QUESTION
What does it mean to have a charged off mortgage in a foreclosure proceeding and why?
Asked on Aug 10th, 2015 on Foreclosures - California
More details to this question:
We thought our house was foreclosed on back in April, 2013 but we were informed by the mortgage company that they stopped foreclosure proceedings and charged off the mortgage. What does that mean and what are options, we no longer live at the house because we thought we lost it to foreclosure? Frankly, we don't want the house.
3 ANSWERS
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Since you don't want the house, you may not need to do anything. Their 'charging off' the mortgage debt may mean that they waived any deficiency on the resale of the house. While that is often a good deal, you could wind up paying tax on a portion of the forgiven debt. Many tax preparers do not understand the limits of the applicable law. Ask your preparer to review sec. 108 of the Internal Revenue Code.
Answered on Aug 11th, 2015 at 6:01 PM
What is the address of those?
Answered on Aug 11th, 2015 at 6:00 PM
You should check with a title company but you may still technically own the house. If so, you can sell it or give it back to the bank through a deed in lieu of foreclosure.
Answered on Aug 11th, 2015 at 2:04 PM