Posted on: 01st Nov, 2008 08:52 pm
i am behind on both my first and second mortgage. unfortunately, due to other circumstances i had to abandon the home. now, first mortage lender has decided to do a charge off instead of a forclosure. what does this mean to me, and what are my legal responsibilities. i reside in michigan if this matters. second mortgage has not made any decisions on their end.
Hi rsummers!
Welcome to forums!
Mortgage charge off does not mean that the lender has forgiven the dues. It actually means that the lender is no more interested to collect the dues from you and thus, he has sold your mortgage to a collection agency. This collection agency will now collect the dues from you. If you do not pay the dues, they may place liens on your property or even garnish your wages.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Mortgage charge off does not mean that the lender has forgiven the dues. It actually means that the lender is no more interested to collect the dues from you and thus, he has sold your mortgage to a collection agency. This collection agency will now collect the dues from you. If you do not pay the dues, they may place liens on your property or even garnish your wages.
Feel free to ask if you have further queries.
Sussane
Hi rsummers!
You will have to pay your dues to a collection agency and not to the original lender. Many a times, the collection agency also offers alternative payment plans. If your collection agency offers one, you can take that plan if you can afford it.
Thanks.
You will have to pay your dues to a collection agency and not to the original lender. Many a times, the collection agency also offers alternative payment plans. If your collection agency offers one, you can take that plan if you can afford it.
Thanks.
Hi Rsummers,
A charge-off implies that the lender would no longer collect your payments. He probably intends to sell off your debt to a collection agency. The agency will then collect the payments from you. It's not that once a charge-off is declared, you no longer owe the debt.
A charge-off does affect your credit score. So, it's better to repay the charged-off debt, if not in full then at least for a settled amount. Know more on credit charge off from the information available here.
Regards,
Jessica.
A charge-off implies that the lender would no longer collect your payments. He probably intends to sell off your debt to a collection agency. The agency will then collect the payments from you. It's not that once a charge-off is declared, you no longer owe the debt.
A charge-off does affect your credit score. So, it's better to repay the charged-off debt, if not in full then at least for a settled amount. Know more on credit charge off from the information available here.
Regards,
Jessica.
If I understand correctly, if your mortgage is charged off you still own the property. Therefore, it is in your best interest to work out arrangements with the collection agency?
Hi jwade,
It's not mandatory that you own the property though your mortgage is charged off. If there are two mortgages on a property and the first lender forecloses the property, the second lender will have the right to charge off the mortgage. In such a case, though you lose the property, you will still be liable to pay the charged off mortgage.
It's not mandatory that you own the property though your mortgage is charged off. If there are two mortgages on a property and the first lender forecloses the property, the second lender will have the right to charge off the mortgage. In such a case, though you lose the property, you will still be liable to pay the charged off mortgage.
mortgage was charged off January of 2010 Told me to send 500.00 a month to a cashiering company, but they have not sent me papers with the terms or what we owe. I contact the mortgage company and I am told to pay this amount and I will get a 1099 for tax purposes. I'm really skeptical. Any one can make a 1099, this does not mean that the money is going to my loan. I am only given an address which is a p.o. box no phone number. Really not certain if I should pay without any correspondence at all.
Hi sunnygal,
If your mortgage has been charged off by the lender, he will not be able to collect the debt from you. Rather, the collection agency may come after you for the debts. Unless the collection agency contacts you for the debt, you shouldn't pay them anything.
Thanks
If your mortgage has been charged off by the lender, he will not be able to collect the debt from you. Rather, the collection agency may come after you for the debts. Unless the collection agency contacts you for the debt, you shouldn't pay them anything.
Thanks