What happens when a first mortgage is written off?
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What happens when a first mortgage is written off?
I was unable to make payments on my first mortgage. The lender has canceled my home insurance and now the company says they are going to write off the loan. The property value is $15,000 and the mobile home is 25 years old and in need of many repairs. The remainder owed was $44,000 and they just added $6000 to that for interest prior to the write-off. The amount I own far exceeds the value of the property/home. Does this mean I can continue to live at my residence without fear of eviction and, if possibly, sending them what ever amount of payment I can each month?
Asked on November 10, 2011 under Real Estate Law, Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Good question. From what you have written, if the lender on your first mortgage has advised you that it is going to write off your loan on your mobile home, it seems to me that it will no longer be seeking any money from you on the loan.
If that is the case, you need to confirm such in writing and ask for a signed full reconveyance of any mortgage or trust deed securing the loan that you are writing about as well as other documentation stating that you owe nothing further on the loan to protect yourself.
If this is the situation, then you can live in your home without fear of being foreclosed upon. Good luck.
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