LoanSafe Member
I am trying to refinance my 1st mortgage and my second mortgage was charged off in 2012. Will the second mortgage stop my chances of refinancing?


LoanSafe Member
Probably. A charged off account means nothing to you. A “charge off” is an accounting term that means your lender no longer considers the debt collectable. A charged-off loan, is still considered an obligation that you will probably have to pay.

Have you recieved any collection notices in the past 8 years? If you have, then your debt was sold/transferred and they have a right to collect, subject to your states statue of limitations on collecting debt.

Start by checking for a lien at your county clerks office or register of deeds. Your first and second mortgage liens will be listed with the county. If the second is released (meaning you no longer owe the debt), a lien release will also be recorded with the county.

You still may be able to refinance the first, but unlikely. Most refinancing lendors requires junior liens to be settled before refinancing.


LoanSafe Member
It all depends on your local government's regulation. as i encountered with same situation a few months ago. Though, i'd suggest you to consult local mortgage around you.