Letter From Second Mortgage Holder
Date: Thu, 06/28/2012 - 05:42
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.
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.
1099c usually means that the outstanding balance has been forgiv
1099c usually means that the outstanding balance has been forgiven and therefore under IRS guidelines it is going to be treated as income.