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Wells Fargo charged off my 56,000 dollar home. Reported as 0 payment. 0 balance, and 0 old. What does that mean to me. I have not paid anything since 2007.
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∙ 12y ago
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Distinguish between debt forgiveness and debt retirement?
Debt retirement refers to the paying off of a debt in order to avoid future interest payments, this can only be done if the current funds available are able to clear the outstanding balance of the debt. Debt forgiveness on the other hand can be considered to be an amnesty by lending institution for countries who are heavily indebted, this is usually done to help alleviate the debt burden faced by such countries. Therefore the difference between debt retirement and debt forgiveness is that one is paid off by the country who is able to pay off the debt and the other is an amnesty given to remove the debt for countries who cannot afford to pay it off.
If original mortgage is current can a different second mortgage holder foreclose on a charge off?
A charge off just means a bank has considered a bad debt. They still have the right to collect on it. Now it is tough for a second mortgage company or bank to foreclose, reason being that there are in second position. They can start but if foreclosure is followed through with. The first mortgage is paid first and they get what is left over. Remember the house has to be sold etc. Many times they will sell your debt of to a less scrupilous collector. If they do start contact your first mortgage lender immediately. They may have options. Hope this helps.
If your second mortgage was charged off and the company went out of business do you still owe that debt?
Yes, you do. The question would then be, to whom do you owe that debt? There could well be a new company that bought the assets, good will and debts of the company that went out of business and they will still want that money, and the charge off will still stay on your credit report, as it reflects an unpaid and ignored debt that had to be charged off. Most especially since it is a mortgage debt.In the end, you took the money for the second mortgage and you signed a legal contract to repay that money. Not withstanding that the company that paid you money for the second mortgage went out of business it is very likely that there will be a new, or possibly combined business of the old company and a new company that "owns" that debt, and they may contact you to see if an arrangement can be made to pay the debt off, (chances are very good that the company that issued the second mortgage tried repeatedly to contact you prior to charging off the debt).
Is a charge off better than a foreclosure?
They are both bad things....and not mutually exclusive. A foreclosure that doesn't pay off the debt can mean that unpaid portion becomes a charge off, if uncollected. However, a foreclosure is normally viewed as a more severe thing than a charge off....as foreclosures only occur with secured loans (generally homes) and a charge off can occur with just about any debt. I suspect a mortgage would never just be charged off as they would always want to foreclose and get as much from the security as they can, so they would only have to charge off less.
What happens to charged off debt in chapter 7 bankruptcy if you refinance mortgage?
This confuses two different concepts. A "charge off" is an accounting and tax term that means the creditor does not believe a debt is going to be repaid. It gives the lender a tax deduction. A discharge in bankruptcy is a permanent injunction against a creditor taking any action to collect a debt, including debt collection agencies or successors/purchasers of a discharged debt. Assuming the refi of the mortgage happens after discharge, nothing happens. If the refi happens while a c 7 or 13 is still pending, and lowers the mortgage payment, and has been approved by the bankruptcy court, it could affect how much you have to pay to the trustee.
Can a family member buy the house that is in a reverse mortgage?
Only if they pay off the outstanding debt owed on the mortgageOnly if they pay off the outstanding debt owed on the mortgageOnly if they pay off the outstanding debt owed on the mortgageOnly if they pay off the outstanding debt owed on the mortgage
Distinguish between debt forgiveness and debt retirement?
Debt retirement refers to the paying off of a debt in order to avoid future interest payments, this can only be done if the current funds available are able to clear the outstanding balance of the debt. Debt forgiveness on the other hand can be considered to be an amnesty by lending institution for countries who are heavily indebted, this is usually done to help alleviate the debt burden faced by such countries. Therefore the difference between debt retirement and debt forgiveness is that one is paid off by the country who is able to pay off the debt and the other is an amnesty given to remove the debt for countries who cannot afford to pay it off.
If original mortgage is current can a different second mortgage holder foreclose on a charge off?
A charge off just means a bank has considered a bad debt. They still have the right to collect on it. Now it is tough for a second mortgage company or bank to foreclose, reason being that there are in second position. They can start but if foreclosure is followed through with. The first mortgage is paid first and they get what is left over. Remember the house has to be sold etc. Many times they will sell your debt of to a less scrupilous collector. If they do start contact your first mortgage lender immediately. They may have options. Hope this helps.
You owe Americredit for a car you returned can they charge some of that debt off?
They can charge off all of that debt, but it in no way remediates your repsonsibility to pay. All "charging off" a debt means is that it has been removed from the lender's active books. Charge off does not forgive the debt, only bankruptcy can do that.
If your second mortgage was charged off and the company went out of business do you still owe that debt?
Yes, you do. The question would then be, to whom do you owe that debt? There could well be a new company that bought the assets, good will and debts of the company that went out of business and they will still want that money, and the charge off will still stay on your credit report, as it reflects an unpaid and ignored debt that had to be charged off. Most especially since it is a mortgage debt.In the end, you took the money for the second mortgage and you signed a legal contract to repay that money. Not withstanding that the company that paid you money for the second mortgage went out of business it is very likely that there will be a new, or possibly combined business of the old company and a new company that "owns" that debt, and they may contact you to see if an arrangement can be made to pay the debt off, (chances are very good that the company that issued the second mortgage tried repeatedly to contact you prior to charging off the debt).
If you pay on charged off accounts are you throwing money away since no one is trying to collect on them?
Just because an account is charge-off does NOT mean the debt is not being collected upon or that the debt is expunged. Charge-off accounts are often sold to collectin agencies or junk debt buyers who will subsequently try to collect on it. Paying a charged-off debt will not help your credit scores. A status of 'paid charge-off' or 'paid collection' is still a negative. A mortgage lender may look more favorably upon accounts like these, but paying won't remove the tradelines or increase your scores.
Is a charge off better than a foreclosure?
They are both bad things....and not mutually exclusive. A foreclosure that doesn't pay off the debt can mean that unpaid portion becomes a charge off, if uncollected. However, a foreclosure is normally viewed as a more severe thing than a charge off....as foreclosures only occur with secured loans (generally homes) and a charge off can occur with just about any debt. I suspect a mortgage would never just be charged off as they would always want to foreclose and get as much from the security as they can, so they would only have to charge off less.
What is internal charge off?
A bank or a loan company can "charge off" a small amount of debt to get the amount off their books. However, this will affect a person's credit report. And it does not mean the person does not have to pay the debt. A debtor should still work to pay off the charge off, to clear the debt and save their credit rating.
Can a collection agency sue for a 'charged off' debt?
Yes, the term "charge off" does not render the debt invalid or uncollectible.
What happens to charged off debt in chapter 7 bankruptcy if you refinance mortgage?
This confuses two different concepts. A "charge off" is an accounting and tax term that means the creditor does not believe a debt is going to be repaid. It gives the lender a tax deduction. A discharge in bankruptcy is a permanent injunction against a creditor taking any action to collect a debt, including debt collection agencies or successors/purchasers of a discharged debt. Assuming the refi of the mortgage happens after discharge, nothing happens. If the refi happens while a c 7 or 13 is still pending, and lowers the mortgage payment, and has been approved by the bankruptcy court, it could affect how much you have to pay to the trustee.
Who is responsible for a mortgage if the owner dies before its paid off and the house is left to her son in a will?
The mortgage should be paid by the remaining estate. If there is not enough cash left to pay off the mortgage, the house can be sold and the mortgage paid at closing, or if the mortgage is assumable, the son may take on the mortgage as his own debt and keep the house.
How many years does it take for a debt to be written off?
There is no set time for a creditor/lender to cancell a debt. Charge offs are generally done 180 days after the account becomes delinquent. A Charge off does not mean the debt is not still owed and collectible.
