xxx:

Thanks for contacting me for this.  I am in the process of creating a "Do It Your Self Debt Settlement" course.  "Charged Off" means that the creditor sold the debt for to a third party at a loss.  You will most likely get a  1099C for the lenders losses.  Now you owe the debt to someone else.  You can pay that debt when you can.  If you can’t right now, don’t stress too much but be on top of it.  It will not be forgiven.  If you don’t pay it, it will eventually become Zombie debt.  That is debt likely to re-surface sometime in the future.  That will probably be at a bad moment for you.  Most likely the people that bought your debt will track you for triggers until you pay them on a settlement (and beyond).  So settle them when you can.  Another thing to look at is bankruptcy.  The thing is to eliminate the problem as soon as you can.  You can also work with a debt settlement company.  I can connect you for this.  Does this help?  Let me know.

NOTE:  I replied you last Friday.  Washington state does not have a purchase money protection statute.  You attorney is right.  You owe that money.

Let me know about this developments.  That will help me better attend clients.  Thanks.

Sincerely,

Oscar

At 01:47 AM 11/1/2009, you wrote:
 

Oscar, the second mortgage amount was for approximately 65,000.00 and it was purchase money. After consulting with my attorney xxx regarding this matter, I asked him to draft a letter explaining my situation and asked to settle for 6500.00 or essentially 10 percent which is what most banks agree to if there is a short sale on the property. A couple weeks later the lawyers for Citibank counter offered with 16,490.00 and two months to pay it off. Although that is generous and I appreciate their grace in this matter, the truth is if I had 16,490.00 I would have been able to keep my house and avoid foreclosure. Also, I would need a lot more than two months to pay that kind of money. I havent responded to them yet as i’ve been seeking a second opinion. I looked at my credit report and it says the debt has been settled and written off. Im a little confused then as to why im being pursued. Is this just a lawyers office/ debt collection agency that has bought the debt and is looking for a return? I dont want to and cant afford to pay 16,490.00 for something that has possibly been written off anyway. I know you are a busy person and I greatly appreciate you taking the time to respond and look into this for me. xxx
On Fri, Oct 30, 2009 at 10:46 AM, Oscar Morante <oscar@bestshortsales.com> wrote:

xxx:

I understand that you did not refinance.  You bought the house with the mortgages present at the time of foreclosure.  Is that right?  The majority of states have purchase money protection statutes.  Oregon and California do for sure.  Maybe Washington does not.  There are some caveats as well.  For example, in Oregon, once the second mortgage is over around $120K, it is treated differently.

I work in Oregon and Washington, so this knowledge is very important to me.  I will ask my local Washington attorney for my own knowledge sake.  They deal with this issues all the time.  Often they take legal action against the banks.  That seems to work.  Maybe I can get an answer for you today.  If not, in a few weeks. He is about to go on vacations.

The issue is this.  Lets say that Washington state does not have purchase money protection.  If they want to force you into paying they need to take legal action.  This takes a long time to even get started.  Depending on how much is that second mortgage, interest rate, arrears and likelihood that you can ever pay, it may not be worth them suing you.  Chances are you can settle them for less.  You may look into bankruptcy alternatives as well.  You may discharge them that way, or force them into settlement for less than owed.  Keep me informed.  This is a hugely important subject.

Oscar

At 10:52 PM 10/29/2009, you wrote:

You’ve received a contact message from your Contact Form on the ActiveRain network.

Message details: From: xxxx

Subject: Forclosure 2nd mortgage payoff (Sent via Activerain)

Oscar, after an exhaustive number of attempts to work with my lender to keep my home i sadly lost it to foreclosure. Now the second mortgage lender is threatening to take me to court for the balance on the second. The different professionals i worked with through this ordeal told me that the second mortgage goes away after a foreclosure when its purchase money (which it was) but they can come after you only if its refinance or equity line of credit money. After I recieved the letter from the attorney supposedly working for Citibank, I contacted a real estate lawyer in Lynnwood, WA and he stated that I was in fact responsible to pay this debt. Im being referred to you by my friend and mortgage specialist xxxxx of Lynnwood, WA and I hope you can advise me on this matter or put me in contact with someone you work with and trust. Thank you for your time. xxxx Bothell, WA xxxxx

Oscar Morante

www.bestshortsales.com

oscar@bestshortsales.com

Ph: 971-222-3734

Fx: 503-296-5663

9220 SW Barbur Blvd.

Suite 119 - #159

Portland, Or 97219