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
Oscar, the second mortgage amount was for approximately 65,000.00 and it was purchase money. After consulting with my attorney xxxx 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. xxxxxx
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