2nd Heloc 1099-c

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AmberSD

LoanSafe Member
Feb 17, 2010
89
0
6
California
Quick background, 1st & 2nd loan are with WF. 2nd is a HELOC. We stopped paying the 2nd in 2011. The next year it was charged off. We received a 1099-C in 2015 and were able to claim insolvency and not pay taxes.

If I sell or refinance the 1st, the 2nd will take their unpaid balance, right?

Will they ever release the lien?

Can/should I do something to get the lien released, if so, what?
 

AmberSD

LoanSafe Member
Feb 17, 2010
89
0
6
California
So I looked at the county assessor site and looked up my home and it shows reconveyance on 7/30/15, grantor is WF, grantee is me and my husband. I can't find my copy of this record so we ordered one.

Are we free of this loan? Is the lien released?

Do I need to do anything else? Can we refinance?

Please help!!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
Hello,

When a lender charges off a loan, this is really just clever accounting because they still own the debt and loan and now get to write it off as a bad debt. But the lien remains just as it did before the charge off. Now they can go after you personally for the debt without dealing with the 1st mortgage or home.

But based on what you found this afternoon, it may have been released. I would just contact Wells Fargo and see what they have in their records.
 

AmberSD

LoanSafe Member
Feb 17, 2010
89
0
6
California
Right, I got that, the accounting term. I guess I worded it wrong. I read a lot of other threads about lenders charging off loans and then people receiving full reconveyance. So I'm trying to relate my situation with others. I'm just doubting myself and need others opinions.

Is calling them the only way? I just don't want to start a new timeline if a SOL ever comes in to play.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
Normally the people that received full reconveyance, knew that when their loans were charged off or settled with that as part of the deal. With yours, you are not 100% sure.

You can either go by your own research which appears you are doing great and that the lien is gon. You can call them as well or see if the local title company can help for free or charge a small fee to run a title search.
 

AmberSD

LoanSafe Member
Feb 17, 2010
89
0
6
California
I wasn't able to upload the PDF's so I'm just going to type it out. Can someone please put it into laymen's terms.

Dated 7/30/15
FULL RECONVAYANCE
WF as present trustee for the deed of trust executed by Amber as trustor dated 5/29/07 recorded 5/31/07 in book/reel.......as instrument number..... of official records in the office of the country recorder of San Diego, CA having been requested in writing, by the holder of the obligations secured by said Deed of Trust, to reconvey the estate granted to trustee under said Deed of Trust, does hereby reconvey to the persons legally entitled thereto, without warranty, all the estate, title and interest acquired by Trustee under said Deed of Trust.

Dated 2/24/11
SUBSTITUTION OF TRUSTEE and FULL RECONVEYANCE
The undersigned, WF bank as the current beneficiary of that certain Deed of Trust executed by Amber and recorded 5/31/07 in the office of the recorder of San Diego County, CA ....of official records, does in accordance with the provisions of said Deed of Trust hereby substitute WF bank as trustee in place of stead of the Trustee therein, and does hereby vest WF bank as substituted trustee with all rights, title, estate, power, duty and trusts conferred by said Deed of Trust;
Whereas the current beneficiary having represented to the Trustee that the obligation secured by said Deed of Trust has been fully paid and/or satisfied,
Now therefore, WF bank as substituted trustee does hereby grant and reconvey unto the parties entitled thereto, without warranty, all of estate and interest granted to said trustee under said Deed of Trust in the lands therein described, situated in the County of San Diego, CA.

Thanks in advanced!!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
It means Wells Fargo has all rights to the property, deed, and mortgage and if you pay them in full, you can get the same rights.
 

AmberSD

LoanSafe Member
Feb 17, 2010
89
0
6
California
Can you tell me where you got that information? When I research what it means I am seeing that the borrower is released from the mortgage debt and transfers the property title from the lender to the borrower.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
There is nothing on the internet that will "transcribe legal ease" for you. I sold real estate and did mortgages for 10 years and have counseled people for another 10. My interpretation of what you copy and pasted above is based on 20 years of experience. If you don't believe me or need more advice, consult with a lawyer.
 

AZ_Dreaming

LoanSafe Member
Apr 25, 2014
19
0
1
49
I know this is an old thread but I'm curious... Moe, doesn't the fact that they were issued a 1099-C in 2015 mean that WF cancelled the debt??
How can they be asked to pay taxes yet WF still hold a lien on the property?