Posted on: 23rd Sep, 2008 01:03 pm
If a loan has been in foreclosure status for 1 year while waiting on a loan modification approval and the bank decides to send the loan to a charge off status is this just like a forclosure as for as the owner having to move out & now the back will sale the home to someon else from under the current owner?
charge off is really an accounting term. what it means, essentially, is that the bank can no longer consider the loan on the home a "performing" asset, in that no collection of interest is being accomplished. to fail to charge off a debt would be to mislead the public and/or shareholders about actual earnings.
Hi aliciaharris!
Welcome to Forums!
With the process of Mortgage Charge Off, the portion of principal and interest is taken as a loss as the loan is known to be uncollectible. This means that the bank have given up on you repaying this debt willingly. With a mortgage charge off, the credit report will have a negative information for almost seven years.
Feel free to ask if you have further queries
Sussane
Welcome to Forums!
With the process of Mortgage Charge Off, the portion of principal and interest is taken as a loss as the loan is known to be uncollectible. This means that the bank have given up on you repaying this debt willingly. With a mortgage charge off, the credit report will have a negative information for almost seven years.
Feel free to ask if you have further queries
Sussane
Chase holds the mortgage and has promised a loan modification that they suddently declined on, so their word isn't bond & I was told by 1 repr' that a new lender will take over the loan & work out a payment plan & I don't have to move out as in a foreclosure. I called back another day & a 2nd repr' said my house may be sold to a new lender I have to move out. Does this charge off mean the new lender may take ownership of my house as in froeclsure & force me to move out? What are my rights in this case??? Please help me save my home!!!
Thanks So Much
Thanks So Much
Hi aharris!
Welcome to Forums!
Charge off doesn't mean that the new lender will take away your home. But the new lender may pressurize you to pay the due loans. However, you will have a bad impact on your credit score.
Sussane
Welcome to Forums!
Charge off doesn't mean that the new lender will take away your home. But the new lender may pressurize you to pay the due loans. However, you will have a bad impact on your credit score.
Sussane
chase charge off my loan and stated that a third party will be contacted what do that means
Hi daryl!
Welcome to forums!
As the loan has been charged off, the lender no longer holds your account. Your loan account is now being held by a third party collection agency. You will have to contact them and negotiate with them for the payments.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the loan has been charged off, the lender no longer holds your account. Your loan account is now being held by a third party collection agency. You will have to contact them and negotiate with them for the payments.
Feel free to ask if you've further queries.
Sussane