Second mortgage charge off - What does it mean?
Our 2nd mortgage with beneficial was an original 15,000.00 loan. It has escalated to 32,000.00. They are going to charge off this month. My husband is disabled & 1 child disabled. The loan is only in his name. But my name is on the deed. I understand a 1099 we will receive. What happens to the charge off. with a lien against the home. Will it come off in 7 years? Thanks by jonesny from , . Aug 5th 2009
Debra Clark (Debra Clark)
#146 ranked lender in California - 42 contributions
If the lender wants to charge off second mortgage debt, it means that the unpaid loan amount with interest will be reported as a loss for the creditor when he uses an accounting method for calculating tax purposes.A Second mortgage charge off does not mean that you no longer owe the debt. The creditor has the right to collect the debt long after the second mortgage charge off and for this, he takes the help of a collection agency most often. Usually charge-offs occur when the monthly loan payments are not made for more than 6 months.
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