Posted on: 30th Jul, 2009 08:54 am
i have a quick question, i am in the process of short selling a house with a first and second mortgage. my question has to do with the second mortgage. the lender has "charged off" the second mortgage and we are in the middle of negotiating a settlememt. the lender is a credit union and will not accept anything less than 80% of the balance as a lump sum payment. they have agreed to a 30 year repayment plan but are going to continue to report the loan as "charged off special circumstances" for the entire repayment period. i feel the loan should be reported as "paying as agreed" once we start paying? is there any difference in the impact to my credit?
Hi suncoastchiro!
Welcome to forums!
I don't think the lender would agree to report it as "paying as agreed". Once you complete paying off the debts, they would then report it as "paid as agreed". The lender would definitely report the charge off to the credit bureaus. Moreover, the effect on your credit report in both cases would be the same.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I don't think the lender would agree to report it as "paying as agreed". Once you complete paying off the debts, they would then report it as "paid as agreed". The lender would definitely report the charge off to the credit bureaus. Moreover, the effect on your credit report in both cases would be the same.
Feel free to ask if you've further queries.
Sussane