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"Closed" Second Mortgage on Credit Report - What does that mean?

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by hopingforluck, Mar 5, 2010.

  1. hopingforluck

    hopingforluck LoanSafe Member

    Hey all, just wondering if any of you know what this means... On my current credit report, my second mortgage is now listed as "closed".

    Account Type: Real Estate Mortgage - with or without other collateral. Usually a second mortgage
    Account Status: Closed
    Payment Status: Paid, was past due 150 days

    Everything else is blank. Does this mean that they have charged me off (ie get a 1099-c) or does it mean nothing?

    Any help would be great.

    Thanks, Hopingforluck
  2. Social Apocalypse

    Social Apocalypse LoanSafe Member

    I don't know, but I hope you will report back when you find out. There is a lot of "weird" things on credit reports these days with regard to severely upside down 2nd mortgages!! I think they probably wanted the "insurance claim" instead of having to participate in 2MP. That's just my feeling. They don't get the insurance if they participate in a mod with 2MP... ;)
  3. litehouse01

    litehouse01 LoanSafe Member

    I think it means it has been charged off.....and they closed it and got it off their books..
  4. Social Apocalypse

    Social Apocalypse LoanSafe Member

    But the way I understand, we don't know until NEXT JANUARY when we get (or DON'T get) a 1099. Is this correct? I am still trying to understand all of this. Thanks for sharing :)
  5. hopingforluck

    hopingforluck LoanSafe Member

    So if Chase closed the account and charged it off, what happened to the lien on the house? I'm thinking about ordering a residential title search to see if the lien is still there (I would assume that it is).

    Any suggestions on how to figure out the status of the second?
  6. Social Apocalypse

    Social Apocalypse LoanSafe Member

    I am sure it will still be there. We have been having a discussion about the legality of sending a 1099 AND keeping the lien... shouldn't be allowed to both. We shall see.
  7. Daisy Cutter

    Daisy Cutter LoanSafe Member

    Didn't the second mortgage holder hound you with robocalls telling you it was about to be charged off? Thats the usual dance. Chase sends a super scary red letter in US mail claiming they are about to foreclose.
  8. Garry

    Garry LoanSafe Member

    That sounds odd that it says paid, you'd think it would say charge off.
  9. Garry

    Garry LoanSafe Member

    They sent me a lot more than a scary red letter, they started foreclosure. It may have been because my first filed and the second had to follow suite, I don't know.
  10. shasta

    shasta LoanSafe Member

    Closed just refers to the status of the account. Is it a HELOC? If so, it just means you can't borrow against it any more. If the account was charged off it would say "charged off as bad debt."

    If the account is charged off and the lender wants to get it off their books they will send a 1099-C by January 31, 2011 for this year's taxes.

    For credit cards, I know first hand the creditor can't collect or sue on the debt if you pay taxes on the forgiven debt. For mortgages, not so sure, outside of the mortgage forgiveness act of 2007 which refers to modded firsts.

    Only time will tell how seconds are handled. I just read that Bank of America jumped on the 2MP train recently. Hopefully, others will follow suit.
  11. Garry

    Garry LoanSafe Member

    That makes sense Shasta, thanks for the help.
  12. troubleinriverside

    troubleinriverside LoanSafe Member

    I disagree that it means you cant borrow. Mine shut me down from borrowing 2 years ago, and still reports as current. i would suggest the OP contact the bank and ask if they still own the account. Its very possible it could have been sold to a Debt buyer who will try to collect. If the Lein were released, the County recorder will send you a copy of the reconveyance in the mail, which is the Lein release.
  13. Garry

    Garry LoanSafe Member

    That makes sense too, you might be on the money.
  14. hopingforluck

    hopingforluck LoanSafe Member

    Yeah, It was weird.

    For some history, I stopped making payments in July 2009 on the first and second.

    The second started to hound me in September and October. Didn't get the calls too often, maybe 2 to 3 times a week. I'm not sure why they didn't harrass me too much (maybe b/c I signed up with NACA early), or they were just too busy.

    Never got a red letter, and Chase never started up on the foreclosure route. I guess I was lucky
  15. skylarkyang

    skylarkyang LoanSafe Member

    I was told that 2nd loan can not put a lien on your house. I have 2nd loan with Freedom Finance, I stopped paying them back in October 2008, since then they transferred loan from Freedom Finance, GMAC now Spcial Loan. They called me everyday like a clock, but I never answered my phone anyway, just the answering machine would pick up. I am still hopping we would settle it.
  16. Social Apocalypse

    Social Apocalypse LoanSafe Member

    I got NO notification that they were charging mine off. They simply quit contacting me... It seems like they should have to let you know, since charged off 2nds are NOT eligible for 2MP... which is probably the point: They don't WANT to do that, so the better option is to charge off.
  17. Garry

    Garry LoanSafe Member

    I'm thinking HAMP will have to change that rule, you can't keep people on endless trials and not expect the second to charge off.
  18. troubleinriverside

    troubleinriverside LoanSafe Member

    I think there is a conundrum in the American banking industry when it comes to underwater 2nds. they dont want to keep them on the books because they are technically an unsecured liability. they may hold a Lein, but the underlying asset is worthless, so in reality, it is what they call a "toxic asset" . It makes me wonder how they are reporting these on their books. i think they are using accounting tricks, so the government doesn't know how many of these are really out there, and the banks balance sheets look better.
  19. Garry

    Garry LoanSafe Member

    It would be nice if 2mp forced the seconds to take the payoff once the second is charged off.
  20. Social Apocalypse

    Social Apocalypse LoanSafe Member

    I agree Garry. I am sure they are looking at that. They shouldn't have access to "Charge Off's of convenience" to keep you ineligible for 2MP, then, at their will, reinstate the loan and try to collect it while you are powerless to apply for help. I also agree with troubleinriverside that they are probably playing hocus pocus with the books as it suits them with the "secured" status of the loan.

    I called and asked for the payoff amount and they said, "the balance is zero, you can't pay it off." CAN YOU BELIEVE THAT? I am sure if I pressed and called a bunch of different "departments" I could eventually get somebody to take my money, but it's absurd that they tell me I have a zero balance. That is NOT SO. And if it IS so, then WHERE is my reconveyance?

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