Second mortgage charge off after foreclosure

Jupiter678

LoanSafe Member
Hello,

We foreclosed on our home almost 7 years ago. The second mortgage charge off still shows on credit reports. Since our foreclosure there has been no attempt to collect on this debt. How can we handle this mark? We would like to buy a home in the next 18 months

How it is stated on report:

ACCOUNT DETAILS
Account statusClosed
TypeReal estate - junior liens
ResponsibilityIndividual
RemarksCharged off as bad debt

Loan Modified NonGovt
Times 30/60/90 days late0/0/0
ClosedSep 30, 2015

Thank you
 

Jzone

LoanSafe Member
Hello,

We foreclosed on our home almost 7 years ago. The second mortgage charge off still shows on credit reports. Since our foreclosure there has been no attempt to collect on this debt. How can we handle this mark? We would like to buy a home in the next 18 months

How it is stated on report:

ACCOUNT DETAILS
Account statusClosed
TypeReal estate - junior liens
ResponsibilityIndividual
RemarksCharged off as bad debt

Loan Modified NonGovt
Times 30/60/90 days late0/0/0
ClosedSep 30, 2015

Thank you

I'm sure you meant your home was foreclosed on? Not you foreclosed on your home?

Foreclosures generally will stay on your credit report for 7 years. So you are probably pretty close to having it off your credit reports. I would get all 3 of your reports and make sure they are off of all of them.

Now, concerning the debt. Did you file bankruptcy or just stop paying? And was there a first mortgage? What type of foreclosure was it? Judicial or non judicial? Could it of been a deed in lieu of foreclosure? Which type of foreclosure will also greatly affect your responsibility for repaying any debt.

A charged off account means nothing to you. A “charge off” is an accounting term that means your lender no longer considers the debt collectable. A charged-off loan, unlike discharged debt in bankruptcy, is still considered an obligation that you will probably have to pay.

Check out your states foreclosure laws. They vary widely by state. If the property sells for less than the balance owed on the loans,the lender could file a deficiency judgement against you, which requires that you repay the difference.

There is also a statue of limitations on collecting debt secured by a mortgage. Find out what the limit is in your state. Some are as little as 7 years, but some can be 15 years or more.

The good news is you haven't heard from the lender/debt collector in 7 years, so you may not owe anything.
 
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