Posted on: 10th Sep, 2009 03:01 pm
i have a first and second mortgage. currently working to remodify the first to a lower payment. the value of the house has dropped alot more than i thought. i called the second and they mentioned that because they fall in second place an the value of the home has dropped so much they wont remodify the second, so they will charge it off.does this mean they will sell to a collection agency and i will have to repay that back to the agency, even if they intiated the charge off, i was paying the mortgage. i was trying to do a lein stripping but it's not granted in ga. please advise
If they charge off they are probably goign to sell it to a collection agency. You will laible to pay that money
You better clarify this with your bank
You better clarify this with your bank
Hi ajohn,
Even if the second mortgage is charged off, the responsibility of paying it off still lies with you. A charge off does not mean the mortgage is forgiven. You will still have to make the payments to the new lender or the collection agency. But since the value of your house has dropped so much, they will not foreclose on it. I think you should negotiate with the collection agency and convince them to accept a short payoff. You can then set up a payment plan with them and pay it off gradually.
Even if the second mortgage is charged off, the responsibility of paying it off still lies with you. A charge off does not mean the mortgage is forgiven. You will still have to make the payments to the new lender or the collection agency. But since the value of your house has dropped so much, they will not foreclose on it. I think you should negotiate with the collection agency and convince them to accept a short payoff. You can then set up a payment plan with them and pay it off gradually.
Thats the option when the collection agency calls you
I think you have to check with your lender