I have been discharged from a chapter 7 since 7/2010 and did not reafirm my first or second mortgage. My first has been paid on time but I have not paid the second since 8/2011. My home value is $109K and my first mortgage balance is $110 and my second mortgage balance is $41K. Today I recieved a letter from WF today stating; Due to inactivity, continued default and a lack of equity or monetary gain associated with the above loan-referenced loan, the loan was charged off. You may recieve an IRS 1099-C. Until a 1099-C is issued or the loan has a zero balance, payments continue to be accepted and applied as recieved. However due to the loan status, weare unable to offer a formal payment plan or process a modification for the loan.
What does this mean? Will they keep the second lein on the home or if I get a 1099-C will they release lein. I live in Georgia.
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