Replies to This Discussion

Permalink Reply by Tara Polley on July 22, 2011 at 12:48pm

Hi Steve,

As with any debt payments, any payment made will be applied to the oldest amount due. So, if you miss payments for Jan, Feb, Mar and April, then make a payment, it will be applied to Jan. Therefore, come 30 days later, if you do not make another payment to cover February, you will *again* be 120 days past due. Does that make sense?

Permalink Reply by John Treadwell on July 22, 2011 at 12:54pm

Yeah after a charge off your dealing with a collection company, sometimes it's better.   As long as you have the company contact info to follow the Neg. too get the letter from them,but most of my dealings with them they will want more money at the closing from anyone they can get it from.   If your seller wants to keep the loan out of collections ,then make a payment ,but  Tara is right every 30 days until it closes well be the same.

Permalink Reply by Leanne Noble on July 23, 2011 at 2:29pm

John, I am kind of naive here....is this all referring to a HELOC becoming automatically charged off after 120 days, thus ending up in with a collection agency?  At that point - what can the homeowner do to rectify the situation for the most positive outcome (I know he is going to pay money, but in general).  Thank you. 

John Treadwell said:

Yeah after a charge off your dealing with a collection company, sometimes it's better.   As long as you have the company contact info to follow the Neg. too get the letter from them,but most of my dealings with them they will want more money at the closing from anyone they can get it from.   If your seller wants to keep the loan out of collections ,then make a payment ,but  Tara is right every 30 days until it closes well be the same.