I havent paid my second mortgage in years (60,000) with beneficial and have not heard a word from them in three years. Could they have charged off the loan? I dont even want to call them. What happens when a loan is charged off shouldnt I hear something from someone?
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Check your credit report. It should tell you an accurate status.Stopped paying: 08/10, Filed CH7: 08/27/10 , 341 & No Asset Report: 10/6/10, Last day to object: 12/06/10, Discharged: 12/07/10, Closed: 12/08/10
AHEM.....NOT AN ATTORNEY, NOT ADVICE, ETC, ETC -
Can you just stop paying a second mortgage without some type of foreclosure process starting?Comment
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A 2nd always has the option to foreclose at any time. Usually its written off - and if they choose not to foreclose at that moment, they always have the option to foreclose once the the 1st mortgage is less than the value of your home. There is no statue of limitations on a mortgage loan. Your options are either file BK to remove your personal responsibility to it or try to settle in order to get the lien released.Originally posted by wolverinegal View PostComment
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Of course the Statute of Limitation applies to mortgage debt, as it does to most any other debt.Originally posted by Pandora View Post
However, the ability to foreclose on the loan has nothing to do with the ability to collect the debt. So even if the SOL has passed (in CA, it's 4 years), the lien holder can still foreclose whenever they wish.
It's why I was not pushing for reduction of principal of our 1st, even though the house is severely underwater and the debt discharged, putting us in a strong negotiating position. What's the point? any reduction I get will essentially end up in the pocket of the 2nd lien holder, who I haven't been paying for a while now. I would much rather keep the balance on the 1st as high as it is so I have stronger leverage with the 2nd to work out a settlement and remove the lien. House prices WILL recover eventually; we plan to stay in this one for at least another 10 years, so letting the principal catch up slowly is much better in terms of settlement negotiations with the 2nd.
And once I get that taken care of - even if it takes another year of nastygrams from them and pitygrams from me - nothing stops me from then going and trying to work something out with the 1st. All in good time. Patience is a virtue here :-)Comment
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yes, you're correct - beg pardonOriginally posted by onwards View Post
. I should have stated I was referring to if a judgment was issued; it will drop off a credit report after seven years, but the creditor can hound you forever. I know there are some states where a mortgage SOL is 20 years for a contract secured by real property. Guess I should have made that point in my post.
Then you have that pesky deficiency thing if it comes into play.. (recourse / non-recourse)Comment
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