Question My home was foreclosed on about a year ago. I stopped making payments on the second mortgage around the same time and I just got a notice that the loan was “charged off.” What does this mean? Is the debt forgiven? What should I do, if anything? Answer Your second-mortgage debt has not been
If you have a second mortgage on your home and fall behind in payments, the second mortgage lender may or may not foreclose, depending on the value of your home. Read on to find out what happens if you stop making payments on a second mortgage and when that lender may decide to initiate a foreclosure.