Question on charge off

[snowrunner]

I have been following the strategy for settling your second for about a year now. I just noticed that the 2nd was charged off last month, and was wondering what the significance of this is as pertaining to possible settlement . Is the loan usually sent to the settlement department after charge off or is it irrelevant .I am just trying to determine whether this was a good thing or not. Thanks for any input others may have.

[Evan Bedard]

I have been following the strategy for settling your second for about a year now. I just noticed that the 2nd was charged off last month, and was wondering what the significance of this is as pertaining to possible settlement . Is the loan usually sent to the settlement department after charge off or is it irrelevant .I am just trying to determine whether this was a good thing or not. Thanks for any input others may have.

Hey Snowrunner,

It is common practice for the servicer to charge off the 2nd generally after about 180+ days.. This is not going to hinder your chances at achieving a settlement and many people end up settling their 2nd once it has been charged off..

[snowrunner]

Thanks Evan-------- I will just continue to wait for them to make contact about a settlement. Hopefully after a year, the charge off will finally get the ball rolling with an offer from them. Do you feel just ignoring them after a year is still the best coarse of action? Thanks again for your input.

[Evan Bedard]

What state are you located in and have you verified your 2nd is underwater?

[snowrunner]

It is in Idaho . 1st is for $425,000 second is for $290,000. Value is about. $600,000. I ran these numbers by Tom when I started the strategy over a year ago, and we determined it is underwater. Thanks

[Evan Bedard]

Yes it is definitely underwater, there is no rush to try and settle the account since they are in no position to foreclose. Personally I would just hold tight until they make an offer and then begin negotiating from there.

[snowrunner]

Thanks----- have a good weekend

[TomEason]

I have been following the strategy for settling your second for about a year now. I just noticed that the 2nd was charged off last month, and was wondering what the significance of this is as pertaining to possible settlement . Is the loan usually sent to the settlement department after charge off or is it irrelevant .I am just trying to determine whether this was a good thing or not. Thanks for any input others may have.

snowrunner

Thanks for your post. Per the strategy guide, a charge-off is irrelevant and means absolutely nothing to the debtor; it's simply an accounting entry required by bank regulators.

I recommend you continue to exercise patience; a settlement can take a couple of years. And while waiting, you need do nothing. How hard can it be to do nothing, LOL? I personally excel at doing nothing!

Have faith and persevere; you'll ultimately prevail!