Posted on: 12th Mar, 2009 08:36 am
I learnt yesturday that my 2nd has been charged off. I've been asking my servicer Indymac Bank for help on this for months. But because the 1st was in trouble they said they did not have authorization from the investor to do anything on the 2nd. I'm now on a stipulation to modification on the 1st. I learnt that 2nd was refered for charge off in December and even though I've been call almost every week no one told me. They kept telling me to call back as the 2nd was being reviewed. Today, Indymac told me the 2nd will be send to a 3rd party collection agency and that agency will contact me but I can still continue to make payment to the bank. They bank rep they can do nothing about restructing or reducing my 2nd nor change the charge off statue.
Do I have any options here?
Do I have any options here?
hi maria,
as the second mortgage has already been charged off, it doesn't seem to be possible to change the status now. what you can do now is continue making payments to the collection agency so the charge-off is reported as 'paid charge-off' or 'settled charge-off', once you pay off the outstanding balance amount.
as the second mortgage has already been charged off, it doesn't seem to be possible to change the status now. what you can do now is continue making payments to the collection agency so the charge-off is reported as 'paid charge-off' or 'settled charge-off', once you pay off the outstanding balance amount.
Hi there!
I'll get right to the point.....my first and second are w/ the same lender. Both were behind, we set up a repayment plan for the first, and right after it was finalized we found out that the second was charged-off (the same day that the deal on the first was finalized). The lender rep says that they're keeping the second in-house for collection, and they offered us a payment plan on this one also, which reduces our monthly payment by more than half. We were also informed by the lender that there would be no legal action or foreclosure regarding the second, as long as we are willing to stick to a repayment plan on the second. The rep also mentioned that in the state of California in situations such as ours there is usually no foreclosure or legal action taken with respect to the second mortgage once it is charged off. Help!!! Just need to know if any of this sounds shady, and if it is true, and what are the ramifications of a charge-off. The lender rep made it sound as though they were doing us a favor, which I know can't be true.
I'll get right to the point.....my first and second are w/ the same lender. Both were behind, we set up a repayment plan for the first, and right after it was finalized we found out that the second was charged-off (the same day that the deal on the first was finalized). The lender rep says that they're keeping the second in-house for collection, and they offered us a payment plan on this one also, which reduces our monthly payment by more than half. We were also informed by the lender that there would be no legal action or foreclosure regarding the second, as long as we are willing to stick to a repayment plan on the second. The rep also mentioned that in the state of California in situations such as ours there is usually no foreclosure or legal action taken with respect to the second mortgage once it is charged off. Help!!! Just need to know if any of this sounds shady, and if it is true, and what are the ramifications of a charge-off. The lender rep made it sound as though they were doing us a favor, which I know can't be true.
Hi Shasha,
In the state of California, the lenders will not sue you for the deficient amount. They can only recover the collateral if you are unable to pay. You've mentioned that the second mortgage has been charged off. The collection agency has the right to collect the dues from you. If the lender says that "no foreclosure or legal action taken with respect to the second mortgage once it is charged off." then you should ask the lender to give it writing so that you would have a written proof of the fact. This will help you in the long run.
Thanks
In the state of California, the lenders will not sue you for the deficient amount. They can only recover the collateral if you are unable to pay. You've mentioned that the second mortgage has been charged off. The collection agency has the right to collect the dues from you. If the lender says that "no foreclosure or legal action taken with respect to the second mortgage once it is charged off." then you should ask the lender to give it writing so that you would have a written proof of the fact. This will help you in the long run.
Thanks