Posted on: 29th Mar, 2010 09:51 am
FIRST MORTGAGE WAS LISTED ON CREDIT REPORT AS PAID AS AGREED, NOW THEY ARE SAYING IT IS CHARGED OFF. THEY WOULD NOT MODIFY LOAN BECAUSE OF IRS LIENS AHEAD OF MORTGAGE. WHAT TO DO ?
hi sprtsconsult,
if you've paid off the first mortgage on time, then the lender will not be able to report it as charge off. in case, you haven't satisfied the mortgage dues, the lender has the rights to charge off the loan.
if there is an irs lien on the property, then it will get the first priority. it is true that unless you pay off the lien, the lender will not be ready to modify your mortgage. moreover, irs liens are not discharged through bankruptcy. rather than filing bankruptcy, you may apply for a deed in lieu of foreclosure with your lender. this will help you in getting rid of the property and you won't be liable for the balance amount. however, as you sell off the property, it is the irs lien which will be satisfied first.
take care.
if you've paid off the first mortgage on time, then the lender will not be able to report it as charge off. in case, you haven't satisfied the mortgage dues, the lender has the rights to charge off the loan.
if there is an irs lien on the property, then it will get the first priority. it is true that unless you pay off the lien, the lender will not be ready to modify your mortgage. moreover, irs liens are not discharged through bankruptcy. rather than filing bankruptcy, you may apply for a deed in lieu of foreclosure with your lender. this will help you in getting rid of the property and you won't be liable for the balance amount. however, as you sell off the property, it is the irs lien which will be satisfied first.
take care.