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Do I need to pay for second loan even after charge off?

Posted on: 22nd May, 2006 03:36 pm
i was recently in foreclosure (twice) and during the first round, i received a 1099 (cancellation of debt) for my second mortgage. i was just recently hit with back taxes for not reporting this. my mistake. however, in looking to refinance my home, my lender that charged this off now says that i need to pay this in order to get a clear title. so, am i responsible for both the loan and the taxes?

help!
Well it's great that your debt was forgiven and you didn't have to pay the taxes too!!
Posted on: 08th Feb, 2009 12:12 am
My client is being told the lien will be released with a Satisfaction if the 2nd mortgage is "charge off"?
Posted on: 26th May, 2009 04:47 pm
hi eddieinab!

welcome to forums!

second mortgage charge off means that the second mortgage lender is not interested in collecting the dues from you. thus, it has charged off the account. the collection agency will in turn collect the dues from you.

you will have to satisfy the debts and clear the title of the property.

sussane
Posted on: 26th May, 2009 09:22 pm
eddieinab you have to work with collection agency to pay off your debt. Lot of times they will negotiate and settle for lower payment.
Posted on: 26th May, 2009 10:30 pm
our 2nd was charged off now and we are about to finish up our short sale. this short sale will satisfy the first mortgage, but we just found out about the charge off when we called the bank to negotiate what amount of money they would take to buy off the second. we already live in a different hour. what should we do about paying the second now and can we still try to have the second paid off with the short sale?
Posted on: 19th Jun, 2009 06:52 pm
jaqueline jo

Welcoem to teh forum

If your second is already charged off , that means they have marked it as loss in thier accounts. But it does nto eman that the bank will stop collecting that money. They may transfer this to a collection agency for collection.

Probably since its not been too logn, you can call the bank and see what need to be done to settle that before it goes in to collection It is probably easier to work with the bank than a collection agency

Good luck and feel free to ask
Posted on: 20th Jun, 2009 09:47 am
If a car gets repossed voluntarily can the lender file a 1099c and will the irs be able to take any tax refund I could be getting ?
Posted on: 27th Jun, 2009 03:40 pm
In my opinion, the lender can issue a 1099c and the irs can take away any tax refund that you could be getting.
Posted on: 29th Jun, 2009 12:31 am
I was going through foreclosure, and discovered that my 2nd charged me off. I finally figured out my mortgage with my first, and have begun paying again as of 3 months ago. Yesterday, I got a call from a collections agancy that said I owe them $72k. What do I do about this, if you say I don't have to pay. Thanks
Posted on: 31st Jul, 2009 04:52 pm
Hi MW,

A second mortgage charge off does not mean that your second mortgage dues have been forgiven by the lender. You are still liable to pay off the mortgage dues. The collection agency would collect the dues from you. In my opinion, you should negotiate with the collection agency and try to lower your payments. This may help you in paying off the dues.

Thanks
Posted on: 31st Jul, 2009 09:16 pm
i recently received a mail from my lender saying to pay them what i owe on the 2nd otherwise it will be in foreclosure.i do owe them for 8 months .My first is with the same lender n is current. can they foreclose my home?
Posted on: 08th Oct, 2009 09:52 am
Hi jk,

The lender has all the right to foreclose the property if you're unable to pay off the dues. In my opinion, you should contact them and check out if they can give you a payment plan to clear off the dues.

Thanks
Posted on: 08th Oct, 2009 11:08 pm
I am trying to following this as I have a first mortgage in which I am currently in a repayment program on. The second mortgage has been charged off and I have a tax loan as well.

I am considering just getting out of my house completly and moving in with my parents. I owe too much on the house and have too many repairs. So what options do I have?
Posted on: 12th Oct, 2009 11:31 am
Hi boosted!

Welcome to forums!

As far as the tax loan and charge off is concerned, you will have to pay it off. You can negotiate with the collection agency for a payment plan and pay off the dues. In case of your first mortgage, you can apply for a deed in lieu of foreclosure and sell off the property. You won't be liable for the deficient amount resulting from the sale. However, it would lower your credit score by 250 points.

Feel free to ask if you've further queries.

Sussane
Posted on: 13th Oct, 2009 12:28 am
if the first loan forecloses on me since the 2nd load has been written off and i have a tax loan. should i file bankruptcy, will this clear everything?
Posted on: 13th Oct, 2009 10:56 am
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