Posted on: 23rd Mar, 2011 01:30 am
hi everyone,
i am an veterans (iraqui freedom) last year i applied for a loan modification and got approved last sept. 2010. although i was protected with scra after my deployment. because of the hardship and lost of income. i was'nt be able to pay my second morgage. my wife got a call from my second mortgage that they charge off my loan. my wife made a payment arrangement which is half what i had been paying. eventhough i'm still negotiating with my loan mod. as what i said i've been approved for loan mod and i start paying my 1st mortgage since sept. still beyond my need but i want to keep my home. my problem is my 2nd mortgage, becuase i'm paying half of it but still i have a hard tme every month to meet my end. i spoke to the bank and still on their collection dept. my questions:
1) what charge off means on my case?
2) how much ideal % do i have to settle in case i have to negotiate. i am planning to make a loan to my 401k in order to settle this in a lesser amount.
3) if i can't afford the settlement and not paying them. how it will affect my credit. i required to have a security clearance as the nature of my job and this cause me (my job) if my credit will go bad.
i really appreciated whatever help or suggestions you can offer. thank you very much. i find this forum as a very helpful website. more power to all of you. god bless you all.
i am an veterans (iraqui freedom) last year i applied for a loan modification and got approved last sept. 2010. although i was protected with scra after my deployment. because of the hardship and lost of income. i was'nt be able to pay my second morgage. my wife got a call from my second mortgage that they charge off my loan. my wife made a payment arrangement which is half what i had been paying. eventhough i'm still negotiating with my loan mod. as what i said i've been approved for loan mod and i start paying my 1st mortgage since sept. still beyond my need but i want to keep my home. my problem is my 2nd mortgage, becuase i'm paying half of it but still i have a hard tme every month to meet my end. i spoke to the bank and still on their collection dept. my questions:
1) what charge off means on my case?
2) how much ideal % do i have to settle in case i have to negotiate. i am planning to make a loan to my 401k in order to settle this in a lesser amount.
3) if i can't afford the settlement and not paying them. how it will affect my credit. i required to have a security clearance as the nature of my job and this cause me (my job) if my credit will go bad.
i really appreciated whatever help or suggestions you can offer. thank you very much. i find this forum as a very helpful website. more power to all of you. god bless you all.
Hi kevedw,
Welcome to Mortgage fit,
"What charge Off means on my case? "
This means lender thinks that loan given to you is no longer a profitable business for the lender and thus they are going to report your loan as a loss in their balance sheet...
"How much ideal % do I have to settle in case I have to negotiate. I am planning to make a loan to my 401K in order to settle this in a lesser amount. "
if you wish to keep the house then you can ask for the modification of the loan by which lender will reduce your monthly payment and increase the tenure of the loan.
If you don't want to keep the house then you can request the lender for the deed in lieu of foreclosure which is one of the best way to deal with this situation.
"If I can't afford the settlement and not paying them. How it will affect my credit. I required to have a security clearance as the nature of my job and this cause me (my job) if my credit will go bad. "
Shortsale is also good option to get less toll on your credit..At present there are two options which will have less impact on your credit.1.Deed in lieu of foreclosure2.Shortsale...
For further information on the deed in lieu foreclosure you may visit this link...
http://www.mortgagefit.com/deedinlieu/affectcredit.html#crediteffects
For further info on shortsale visit this link....
http://www.mortgagefit.com/discuss/shortsale-crediteffect.html
Feel free to ask any further query if you have......
DIPA :arrow: :arrow: :arrow:
Welcome to Mortgage fit,
"What charge Off means on my case? "
This means lender thinks that loan given to you is no longer a profitable business for the lender and thus they are going to report your loan as a loss in their balance sheet...
"How much ideal % do I have to settle in case I have to negotiate. I am planning to make a loan to my 401K in order to settle this in a lesser amount. "
if you wish to keep the house then you can ask for the modification of the loan by which lender will reduce your monthly payment and increase the tenure of the loan.
If you don't want to keep the house then you can request the lender for the deed in lieu of foreclosure which is one of the best way to deal with this situation.
"If I can't afford the settlement and not paying them. How it will affect my credit. I required to have a security clearance as the nature of my job and this cause me (my job) if my credit will go bad. "
Shortsale is also good option to get less toll on your credit..At present there are two options which will have less impact on your credit.1.Deed in lieu of foreclosure2.Shortsale...
For further information on the deed in lieu foreclosure you may visit this link...
http://www.mortgagefit.com/deedinlieu/affectcredit.html#crediteffects
For further info on shortsale visit this link....
http://www.mortgagefit.com/discuss/shortsale-crediteffect.html
Feel free to ask any further query if you have......
DIPA :arrow: :arrow: :arrow: