Posted on: 12th Jan, 2010 08:26 am
Need advice. 1st mortgage is in good and current standing. 2nd had gone delinquent due to job loss. The loan has been charged off but the bank is willing to do a modification of no interest for 5 years, then balloon payment due for balance. We have already paid $17,000 towards this interest only loan and owed $76,847.36. After 5 years, we will have paid $25,500 and then will owe $56,979.74. What are the repercussions of leaving it in a charge-off status?
hi terrie,
if the second mortgage has been charged off, then the lender cannot negotiate the debt with you or give you a loan modification. you should first speak to your lender and check out whether or not they have charged off the loan. if not, then you can negotiate with the lender for a modification. if the lender has really charged off the loan, then you'll have to negotiate with the collection agency. if you do not pay off the dues to the collection agency, then they may sue you for the debts.
thanks
if the second mortgage has been charged off, then the lender cannot negotiate the debt with you or give you a loan modification. you should first speak to your lender and check out whether or not they have charged off the loan. if not, then you can negotiate with the lender for a modification. if the lender has really charged off the loan, then you'll have to negotiate with the collection agency. if you do not pay off the dues to the collection agency, then they may sue you for the debts.
thanks
I agree if the bank has charged off the loan already, then a modification is kind of pointless and seems unlikely.
Perhaps they have not really charged that loan off yet?
Perhaps they have not really charged that loan off yet?
same situation, however the 2nd was not reaffirmed thru bankruptcy, the loan went to recovery dept. 1st is in good standing.....both thru same lender, home not worth total of both loans combined.....can the bank forclose ?
Hi badfour,
You've mentioned that the second mortgage has been sold off to a collection agency. In that case, the lender will not be able to foreclose the property for the second loan. However, you'll have to negotiate your second mortgage dues with the collection agency and pay it off.
You've mentioned that the second mortgage has been sold off to a collection agency. In that case, the lender will not be able to foreclose the property for the second loan. However, you'll have to negotiate your second mortgage dues with the collection agency and pay it off.