2nd charged off....what does that mean?

[getmeoutofhere]

After 8 months of not checking, I pulled my credit report today. 527...not bad LOL!

I have a second with GMAC. The status states "CHARGED OFF". Can anyone tell me what this actually means.

[HHM]

This explains it

http://askmethner.com/?p=197

[DustinLH00]

Generally, it means that they have written the balance off and booked it as a loan loss on their end. Most people arent aware that in order for the mortgager that holds the 2nd lien position to take the house, they have to pay off the 1st lienholder. Most the time its not worth it, so they just drop it.

Now they most certainly will not release their lien on your home, so they will get paid when you sell or get forclosed on...