Posted on: 21st Apr, 2011 08:25 am
We thought our house was foreclosed on last year, even stats on our credit report, city keeps sending us notices to keep up the house, we called the lender and they said it was charged off, what does that mean? What should we do from here
Hi crazykari65,
Welcome to Mortgage fit,
Most of the people have a notion that 'charge-off' means you are relieved from the debt..(either with forfeit of the property)..but guys/gals this is just a naive idea....
In reality 'charge-off' means since you have stopped paying the monthly due over few months, bank/lender has identified that your loan is no longer a profit making deal for them...and thus they mark it in their book (accounts) that your loan is a loss making deal for them.This simple process is termed as 'charge off'.
So now you have understood that what is meant by 'charge off'..You can just contact your lender and try to pay the dues as early as possible so eventually that charge-off status of your loan will be removed once you become current on your payment...
Feel free to ask any further query if you have....
DIPA
Welcome to Mortgage fit,
Most of the people have a notion that 'charge-off' means you are relieved from the debt..(either with forfeit of the property)..but guys/gals this is just a naive idea....
In reality 'charge-off' means since you have stopped paying the monthly due over few months, bank/lender has identified that your loan is no longer a profit making deal for them...and thus they mark it in their book (accounts) that your loan is a loss making deal for them.This simple process is termed as 'charge off'.
So now you have understood that what is meant by 'charge off'..You can just contact your lender and try to pay the dues as early as possible so eventually that charge-off status of your loan will be removed once you become current on your payment...
Feel free to ask any further query if you have....
DIPA
Hi crazykari,
Charge off means that your lender is not interested in collecting the mortgage any more from you. He is considering your account as a bad debt and may have sold off the account to a collection agency who will in turn collect the dues from you.
Charge off means that your lender is not interested in collecting the mortgage any more from you. He is considering your account as a bad debt and may have sold off the account to a collection agency who will in turn collect the dues from you.