Posted on: 15th Aug, 2009 11:00 am
Can someone please explain in detail whar happens when a mortgage is charged off? Please.
Hi,
If your mortgage is charged off, it means it has been sold off to a collection agency. Your original mortgage holder will no longer be collecting the payments from you. The collection agency will now collect your payments. You can negotiate with the collection agency and convince them to accept less than the actual amount owed.
If your mortgage is charged off, it means it has been sold off to a collection agency. Your original mortgage holder will no longer be collecting the payments from you. The collection agency will now collect your payments. You can negotiate with the collection agency and convince them to accept less than the actual amount owed.
The original lien holder is only showing the debt as a loss for tax purposes, they are selling the debt off to a collection agency or third party to now collect the balance. It would have already done the damage to your credit, I would suggest talking with a real estate lawyer to find out if the current holder can come after you for the remaining balance. Each state has different laws...