Posted on: 26th Oct, 2009 06:10 am
i have a 2nd mortgage. in 2004 i got laid off. able to stay afloat until jan 2005. i was not able to make payments on 2nd mortgage. maintained 1st mortgage with no problems. in june 2005, 2nd mortgage co (gmac) posted my house for sheriff sale. resolved that matter and i continued making payments to today. in jan 2009 i tried to refinance and lump the 1st and 2nd mortgages together. i found out that the 2nd mortgage was charged off in jan 2005. i have received 1099 forms from them for 2005, 2006, 2007, and 2008 showing they took 15,000 for interest. can a loan be considered charged-off and still collect interest and late fees?
hi joan,
the charged off debt will still collect interest. you remain responsible for the mortgage debt even after it has been charged off. the interest will get added to the balance you owe on the loan. if you have been making the payments on the first mortgage, it is unlikely that your house will be foreclosed due to the second mortgage debt. what you should do now is, talk with the collection agency in charge of the second mortgage debt and negotiate for a settlement.
the charged off debt will still collect interest. you remain responsible for the mortgage debt even after it has been charged off. the interest will get added to the balance you owe on the loan. if you have been making the payments on the first mortgage, it is unlikely that your house will be foreclosed due to the second mortgage debt. what you should do now is, talk with the collection agency in charge of the second mortgage debt and negotiate for a settlement.
Well, you were late, so the info is accurate.
It is probably just a coincidence... sometimes it takes time to get stuff posted onto a credit report.
It is probably just a coincidence... sometimes it takes time to get stuff posted onto a credit report.