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Company Loan Type APR Est. Pmt.

1st lender willing to work but 2nd lender charging off accou

Posted on: 20th Sep, 2008 02:15 pm
1st lender willing to work but 2nd lender charging off account...Our first lender is renegotiating our loan for us but our second lender is charging off the loan. What does this mean 5, 10 years down the line when we want to sell our house? Are we going to pay taxes on the loan that is being charged off and then have to pay the loan in full when we sell the house to clear title?

If we can't renegotiate both loans we can't afford to keep the house. Would it be better to loose the house? What is worst a foreclosure or charge off? Both stay on your credit history for 7 years right?

Thank you,
Hi charge off,

You can go for short sale or deed in lieu and not foreclosure if you wish to. You can sign a deed in lieu in the name of the lender after which the property is of the lender. He will sell it in the market to get his payments. This will damage your credit less than a foreclosure or a bankruptcy.
Posted on: 22nd Sep, 2008 06:17 am
Hi charge off!

Welcome to Forums!

If the second lender charges off that means they will sell off your loan to another agency which will pressurize you to pay off the loan. Its better if you could go for a short sale or deed-in-lieu.

Feel free to ask if you have further queries.

Sussane
Posted on: 26th Sep, 2008 04:34 am
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