second mortgage mystery
My chapter 7 bankruptcy was discharged fifteen months ago. Since then the finance company that holds my second mortgage has not sent statements or contacted me. I was current on both mortgages at the time of the bankruptcy and have kept my home. About seven months ago I stopped making payments to the second mortgage company after repeated written requests for a statement showing how payments were being applied went ignored. Still, not a word from them.I recently called the local branch of this company and was told
they showed a zero balance on this account. When I told them it should be around $38,000 I was told "maybe it's been written off," and given another number to call. That led to more numbers to call and no one seemed able to give me any more information. I think that they aren't attempting foreclosure because they would have to buy out the first mortgage and could lose money on the deal, or at best barely break even. My questions are these: If it's been written off or charged off are they still be adding interest, late fees,etc? And what happens if I try to sell the home? If I stay in the home could they still foreclose at a later date, say ten years from now? If I start making payments again how does that change the status of the account? A current credit report shows this account as "being paid as agreed." and that it's a secured debt in a chapter 7 bankruptcy. Of note: The finance company was sued in a class action lawsuit eighteen months ago and had to pay out fines to customers. Does anyone have any insights on this situation?
YES OR NO
they showed a zero balance on this account. When I told them it should be around $38,000 I was told "maybe it's been written off," and given another number to call. That led to more numbers to call and no one seemed able to give me any more information. I think that they aren't attempting foreclosure because they would have to buy out the first mortgage and could lose money on the deal, or at best barely break even. My questions are these: If it's been written off or charged off are they still be adding interest, late fees,etc? And what happens if I try to sell the home? If I stay in the home could they still foreclose at a later date, say ten years from now? If I start making payments again how does that change the status of the account? A current credit report shows this account as "being paid as agreed." and that it's a secured debt in a chapter 7 bankruptcy. Of note: The finance company was sued in a class action lawsuit eighteen months ago and had to pay out fines to customers. Does anyone have any insights on this situation?
YES OR NO