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How to Avoid 2nd Second Loan Being Charged Off & Sent to Recovery - Collections?

Posted by Sara Mehrpouyan Los Angeles CDPE on September 13, 2011 at 9:13am in Short Sale Discussions

I was wondering if there is a black and white answer to this question? Of course, the 2nd lender would like to receive their full payment from the borrower, however if the borrower were to make some amount of payment (less than the full payment), would that smaller payment keep the account from being charged off or sent to recovery dept? I appreciate any feedback. Thanks.

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Replies

Holly B. Long September 14, 2011 at 6:14pm

It has been my experience that best to do what you have to do to keep the 2nd from being "charged off". Trying to track down where the loan went and then dealing with someone who has bought the loan or with an attorney --usually does result - not only in more time and effort to get an approval --but more money and money from someones pocket -rather than the purchase price.
Joshua Gayman September 13, 2011 at 3:13pm

I would let the 2nd mortgage company know immediately that you are working a short sale on the property and trying to get them more money out of it than if they sell it to a collection agency/charge it off. and make sure you get that message to someone who can make the right decision
Brigitte Mueller September 13, 2011 at 10:18am

I had a Chase 2nd that went to collections. The homeowner was only a few months behind.

The charge off company demanded more money than the first could allocate, so the buyer and agents had to chip in to make the deal work.
- Sara Mehrpouyan Los Angeles CDPE > Brigitte Mueller September 13, 2011 at 10:37am
  
  Hi Brigitte -- I know what you're talking about, however I was referring to trying to avoid the account from being charged off. :) Thanks.