Charge off 2nd mortgage as of 04/07, now in Foreclosure

Submitted by Anonymous (not verified) on Fri, 02/20/2009 - 13:35

We had 1st and 2nd mortgages with GMAC/ DITECH. We had a loan modification 03/07 and the 2nd mortgage went into a charge off status 04/07. We have been current on our 1st mortgage for 24 months. We received foreclosure notices from a mortgage company we have never heard if stating we were in default and they were foreclosing .Can a mortgage company buy a mortgage that is in charge off status? If so can they foreclose on us after 24 months, even though we have been current with our loan modification plan?. How can I check to see if this is for real or just a debt collection company trying to collect a bad debt. I notified the recovery dept. and they haven't even got our loan account listed.

You need to send a certified letter to your loan company first requesting whether or not they sold the account or they still have it. Second send the collection agency a validation letter, asking to validate the debt. You need to contact your local goverment and find out if their is a sale date for your property. This is required before sale of a property. This is highly unlikly if you have not gone to court yet. The biggest issue is, it sounds like your saying they are attempting to foreclose on a second mortgage, which they can not do unless they buy the first mortgage. The first mortgage has rights always. Check into the issue, don't stress and make good contacts, with names and numbers. document all calls, letter or meetings.

Fri, 02/20/2009 - 15:26 Permalink

What is a certification letter? Can you send this to any company,even credit card companies, asking if they sold off a debt? I have been here on this forum a while and have not heard of this. Any new information is always great because it can be used to help out someone else if they find themselves in the same situation.

Sat, 02/21/2009 - 00:55 Permalink

fireyone I don't know if I mislead you, but I'm talking about a certified letter to your creditor.

Sat, 02/21/2009 - 23:37 Permalink
VAS (not verified)

I invested $ 3rd position in commercial RE new building. Loan in default. Just found out today tenant arranged with 1st position lender to take business out from under owner and leave all other lenders stuck with losses. Tenant said he sent certified letter to owner. Is this legal? What's the purpose of the certified letter?

Fri, 09/25/2009 - 05:40 Permalink

What would be the crux of that certified letter LT?

Fri, 09/25/2009 - 05:47 Permalink

The reason for certified letter is, who ever receives it need to sing and the tenent has the proff that the notice has reached the woner

Fri, 09/25/2009 - 06:37 Permalink
brenda (not verified)

my second mortgage charged off and I agreed to make $100 monthly payment. The bank has now tranfered the account and given me a new loan number. How will this work for me? Will the loan still be on my condo and why am I given a new loan number?

Sat, 10/24/2009 - 15:55 Permalink
brenda (not verified)

If my second mortgage is charged off and there is no equity into my home. Why should I pay a new company with a new loan which I did not establish with them. Do they have rights to the property to foreclose as a second lender?

Sat, 10/24/2009 - 15:59 Permalink

Hi Debbie,

Are you sure that it was a different mortgage company buying your second mortgage are was it a collection agency. And yes a second mortgage can foreclose on your house if you don't make your payments you owe them. You put your house up as collateral so if they can't get the money from you they get it from selling your house. I tried to modify my first mortgage and they wouldn't even work with me because I had the second mortgage. Now every bank might be different but I know mine wouldn't.

Sat, 10/24/2009 - 16:50 Permalink
Conoverhome (not verified)

My house has a first and a second mortgage, total amount of the first that is $450,000.00 and the second is around $110,00.00.
Total amount is at $545.00.00. The first is in forecloser but is getting a modification soon. Once the first is modified, can the second foreclose on me? They are both with Provident Funding with seperate investers. :(

Sun, 10/25/2009 - 06:43 Permalink

Wow, I am not sure, you should go to the mortgage forum and ask them. You can find it by going to the bottom of the page and hitting the mortgage fit icon. Goodluck, hope you can find some resolution here.

Sun, 10/25/2009 - 12:13 Permalink

In my opinion yes if you don't pay the second mortgage they can.You put up your house for collateral. I'm not a professional so you may want to check with one in your state it could be different there. But my first wouldn't even modify mine as long as I had the second mortgage. You may want to contact your second mortgage and work out a payment plan. They may even reduce your payment.

Sun, 10/25/2009 - 13:07 Permalink

I really think that you should visit the mortgage forum, you would get invaluable information there from experts in the industry. These people work in the industry everyday and will not hesitate to help you, please go there and pose your questions as soon as possible. I am not saying you won't get help here, but these guys and gals are experts in the field and really know there stuff. I would go there if I were you.

Mon, 10/26/2009 - 00:09 Permalink
marie (not verified)

my second mortgage did a charge off can they take my house and can i call to make some type on payment plan

Sun, 04/11/2010 - 18:40 Permalink

Hi Marie,

Yes, you can try to to work out a payment arrangement with the lender. If you go delinquent on your second mortgage for more than 2-18 months (varies according to the state), your property can get foreclosed. However, foreclosure takes quite an amount of money. Thus, lenders would rather work out payment plan with you than foreclosure.



Mon, 04/12/2010 - 12:10 Permalink
dina (not verified)

my property was already forclosed last dec 09 but the second mortgage was transfered /sold to another company. how would I know if this is ligit? do I still have that obligation to pay even if the property was already forclosed and sold at the auction?. Please advise.

Thu, 04/22/2010 - 16:38 Permalink

Hi Dina,

If the money from the sale of property does not satisfy the outstanding debt amount, and if there is still a deficit amount after the sale of the property, then you are supposed to pay the deficit.



Sat, 04/24/2010 - 10:10 Permalink
AA (not verified)

My 1st Mortgage has now been fully modified and i now considered current but my second mortgage is in Charge Off. Can I still try to come up with a payment plan with them for my 2nd mortgage considering that it's no longer in the Recovery Department? I know they have offer me a Lump sum Settlement Amount but I'm afraid that I may not have the funds for that.

Thu, 05/12/2011 - 21:37 Permalink