2nd mortgage charged off?? Anyone else have this

[253BK]

So I got a call from a collection company telling me they have us owing them 77,000 in collections and they are ready to set up a payment plan! I went on to tell them we retained a attorney and gave him his info!

Problem is if it was charged off from Wells Fargo and this collection company has it now hwo will that work in chap 13??? It should now be a unsecured loan right??? Since wells charged it off?

We are keeping the house that this is all happening to and it would be great it the second mortgage was gone as it will help us monthly alot!

Has anyone else had this happen? How did it work out if so

[Flamingo]

Wouldn't it be great if mortgage loans could just disappear? However, if you are keeping your house, the second mortgage just doesn't disappear and you will have to continue to make payments on it, either in or out of your Plan. I see you have retained an attorney but I am assuming you have not filed yet. Your attorney can give you a breakdown as to what will occur with your second mortgage inasmuch as it appears you have late payments which will probably be included in your Chapter 13 Plan.

[rrockinggramma]

Does the CA own this debt now? I guess I would ask them how they see it or wait to see how they file the claim in your BK. Wells sold off my student loan (private) and when my chapter 13 is done, they told me they are done collecting on it and the loan will be closed and marked as "paid in full" My CA does not report to my credit report. My CA is Oliphant. Who bought your debt? They were pretty nice when I talked to them.

[Flamingo]

Does the CA own this debt now? I guess I would ask them how they see it or wait to see how they file the claim in your BK. Wells sold off my student loan (private) and when my chapter 13 is done, they told me they are done collecting on it and the loan will be closed and marked as "paid in full" My CA does not report to my credit report. My CA is Oliphant. Who bought your debt? They were pretty nice when I talked to them.

A second mortgage is a lien on real property. It is a secured debt like the first mortgage. Mortgage loans get sold often. That doesn't mean it changes from a secured debt to an unsecured debt.

[rrockinggramma]

I understand the issue of a second mortgage being secured and lein attached. However in today's real world, many house prices are falling and worth far less than a first and a second combined. It is possible that Wells has simply thrown their hands up in the air and sold this debt off to a CA because it realizes that it held second position (subordinate) in the chain of command and collecting any money on this particular debt is probably a lost cause. I am sure this poster is not the first to file BK on Wells and a mortgage or to let one go to foreclosure. And with everyone screaming for the lenders to write down their loans, Wells is the loser as a second mortgage. So I believe that it is possible that Wells charged it off and are done with it. So I was suggesting that the OP find out if that is really the case.

True in yesterday's world a second mortgage wouldn't go away, but in this mortgage meltdown, everythng has changed. The OP does need to find out about the lein against the property however. That will not go away unless it is released by Wells. So did Wells transfer the lein to the CA or as you suggest, they are now the collector for the second mortgage to be paid in full.

[Flamingo]

It will not go away in any event because there is no foreclosure and these folks are keeping their house and filing Chapter 13. Wells Fargo and other mortgagors and other creditors have their own collection departments and if you reread the OP's initial paragraphs, there are several "if's" stated in his/her first two paragraphs.

To the OP - please be a little more clear on who called you - did they state they were with Wells Fargo or could the call be about other debts in your Chapter 13? You don't state how far you are behind in payments on your second mortgage so it may have been the collection dept. for Wells Fargo contacting you to work out a payment plan on your late payments not knowing you have already filed Chapter 13.