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2nd mortgage has been charged off. Can lender come after me?

Posted on: 25th Nov, 2008 05:35 pm
Hello,

I live in Arizona and I have an investment property that I got behind the mortgage payments because the tenants didn't paid their rent for 8 months.I was trying to work with the banks before I was late on the payments but neither of them first or second wanted to deal with me.After I was 5 months behind the payments they wanted to talk to me and I was able to work a deal with 1st mortgage and I was thinking I will do the same with second (Chase) but today I went to Chase bank to bring the account current they told me that the account was paid off in full,after the branch manager made few phone calls I found out it was charged off and the recovery department will contact me to settle.I was very surprised because 4 days ago I spoke with a chase representative on the phone and she told me the exact amount I have to pay to bring the account current and I need to to that by the end of the month and I will be fine to start the payments again.It was never mention to me the charged off may occour.What I should do next,keep doing the first mortgage payments and move on?
Please advice what are the chances for Chase to come after me.

Thank you very much

Denisa Kaporalis
Hi nelle,

As the lender has charged off the lien, he will not come after you for the dues. It is the collection agency who will contact you for the payments. If you do not pay the dues, then the collection agency will sue you for the debts.

Take care
Posted on: 12th Mar, 2010 01:17 am
in 1997, our now deceased mother, signed a personal mortgage note of a sum amount provided by an uncle in exchange for payment of a tax lien against her personal property (home) located in albuquerque, new mexico. in 2000, mom filed a chapter 7 bankruptcy, listing my uncle as one of the creditors and was discharged along with the other creditors. can he now come back to claim that sum amount?
Posted on: 10th Dec, 2010 01:16 pm
Welcome Guest,

If the debt was discharged in the bankruptcy filing, then your uncle will not be able to come after your property to claim his dues. Moreover, your mother took out the mortgage. Your uncle cannot hold you responsible for paying it off.
Posted on: 12th Dec, 2010 11:09 pm
contrywide wants to do a loan modification with me ($851,000), even though i did not pay my mortgage for about 2 years now due to a hardship (i fell and i was in the hospital for 6 months), but my second mortgage is with chase for $140,000. now, contrywide said they are going to reduce the principal because my original loan 5 years ago was for $754,000. now, i fell bankruptcy 2 years ago, no one was asking me for any payment, but 2 weeks ago i have received a letter from a collection agency of chase bank, they said i should send "voluntary" payments. i really do not understand what is this, i am willing to modify my first loan, but i will not be able to keep up with the second loan. i ask the lawyer who did the bankrupsy if the second loan was discharge, he said not because was attached to the property that at the time i was planning to keep. what can i do????
Posted on: 10th Feb, 2011 12:13 pm
Can I fell bankrupsy again for the second mortgage???
Posted on: 10th Feb, 2011 12:17 pm
Hi marina!

Welcome to forums!

If the mortgage was not included in your bankruptcy filing, then the collection agency can come after you in order to recover the dues. You won't be able to file bankruptcy now in order to get the second mortgage discharged now.

Feel free to ask if you've further queries.

Sussane
Posted on: 10th Feb, 2011 10:43 pm
Collection agnecy slow cahing checks stop payment called them phone disconnected /address no longer there, the sent me a letter after 7 months want me to star paying again, left me cell phone number at states in temp off twice a week not a good feeling about this shoul I get a legal help I feel they walk away from the debt
Posted on: 23rd Feb, 2011 05:30 am
Hi mike,

It will be a good option to go for legal help in this matter.

Thanks
Posted on: 23rd Feb, 2011 09:38 pm
Will do, I don't want to call a cell number or send ltter to office that dont have there name on it, this is a 2nd morgage I had charge off in chapter 7 but for some reason they have the debt i satated paying when they sent foreclusre papart the laywer i had for chapter 7 died thats when I got the letter should have gotten another lawyer they wont send me how muchI still owe or brake down I ask for a year ago.
Posted on: 24th Feb, 2011 05:38 am
should i wait to here from them again or try to contact this person
Posted on: 24th Feb, 2011 08:43 am
Believe it or not some second mortgages will just charge off instead of foreclosing on the property. Many equity lines are still tied to the property but can charge off just like a credit card, however, if you do not settle the account you will possibly get a judgment against you for the amount owned. It is better to work with the lender directly or even the collection agency if it gets that far. It is still debt that you will be responsible for in the end.
Posted on: 25th Feb, 2011 12:51 pm
what happens to the property after a charge off if you dont pay the debt collectors
Posted on: 27th Mar, 2011 04:35 pm
I owed Chase 56k on 2nd mortgage and 425k on 1st mortgage. I recently learned that the 2nd mortgage has been given to a collection agency. They want $2000 immediately and $400 per month. Can I make a deal that is affordable for me or am I at their mercy. I am getting a modification on the first Mortgage. I am on a Trial payment plan. what is my best course of action
Posted on: 27th Mar, 2011 06:36 pm
Be sure that the CA has bought the 2nd and that you're still not dealing with Chase. If so, then understand that it's not uncommon for a CA to settle the debt for as little as 20%. They probably paid no more than 10% so if they accept 20% they have doubled their money. Your credit has already been damaged so if it were me I wouldn't pay the CA for at least 6 months. They'll threaten you with a law suit but normally this is just a threat because it cost a lot of money to sue. After 6 months, the CA will be much more open to a settlement. If you can't come up with the cash, offer to pay 20% over a time period that makes sense to you. Good luck!
Posted on: 27th Mar, 2011 09:21 pm
I OWNED AN INVESTMENT PROPERTY IN SCOTTSDALE,ARIZONA . I WAS CONTINUALLY LOSING MONEY ON THE PROPERTY AND FINALLY GAVE UP ON IT IN 2010. WASHINGTON MUTUAL QUALIFIED ME FOR A MORTGAGE WHICK LOOKING BACK I PROBABLY SHOULDN'T HAVE..I LOST 62,000 ON THE PROPERTY AND HAVE RECEIVED NOTICES THAT THE PROPERTY WENT TO AUCTION IN JUNE 2011.. I LIVE IN CANADA AND WAS WONDERING IF I HAVE ANY CHANCE OF RECOVERING ANY FUNDS DUE TO MISREPRESENTATION ON THE VALUE OF THE PROPERTY ON THE ORIGINAL PURCHASE..THANK YOU
Posted on: 01st Jul, 2011 08:32 am
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