I had a foreclosure, Now what?

Question

Hello, my house was turned back over in march to the lender (Countrywide). I noticed the home is still not on the market but they now report a $0 balance owned on my credit. I had a second HELOC with Citi Mortgage. It shows as "CBNA" on my credit. They are still showing a balance of $16,000 on my credit but it says "Charged Off" Unpaid balance reported as a loss by credit grantor. Do I still owe the money or what happenes now that it is charged off? I have not heard or recieved anything from anyone but I do want this off my credit as saying I owe that still

Answer 1

Both existing answers are correct - "Charged Off" is purely for the lenders accounting of the mortgage.  It does not relieve you of the debt.

The balance owing is now know as a Deficiency Balance.  The Mortgage company has the right to leave that Balance on your credit report for up to 7 years.  They also have the right to pursue you for a Deficiency Judgment if the Mortgage was Recourse Debt.  If you had put down what State you were in I could better answer that question.  Also with many HELOC's they have provisions where the debt is Recourse even if the State's Laws would normally not be, so you have to read your Deed of Trust or Mortgage.

One last thing to worry about.  Just because Countrywide shows a $0 balance, they could possibly still come after you for a Deficiency Judgment, not to mention Cancellation of Debt Income.  Check to see if the house sold for less than the first mortgage balance.

Mr. Financial Freedom

http://www.5StepsToFinancialFreedom.com

Answer 2

Yes, you still owe the money...a charge-off means that the loan has been written off as a loss by the company....This does not mean that you no longer owe it....This is simply a reclassification that the loan has defaulted. Wish I had better news....sorry.

Answer 3

Call  beneficial there is one in most cities. They are the same kind of lender as countrywide except they are not crooked. They maybe able to shed some light on you situation and explain how to fix things. A charge off is just that, the company charged it off. You still owe the money. Maybe beneficial can help.