Bank U

Where to begin.  My husband and I faced foreclosure procedings back in 2003 and have been trying to catch up ever since.  We actually have three mortgages on our house… our first two are with the same finance company.  The third with a different… an equity line a credit and the ones who started foreclosure on us back in 2003… I will call them bank U. 

Since reinstating our loan with bank U, a few years later we found out that Bank U divided our loan with them up.  I’d say 1/4 of the loan stayed as an OPEN status and the remaining part of the loan (42,500.00) was set to a charged off status. 

Well, now that we have the “open” part of the loan with them paid in full they keep calling us on the charged off portion. We have tried to explain to them over and over again our hardship at this time but they want nothing to hear with it. Now, our other mortgage company has been wonderfully in working with us. 

I sent for a copy of our credit reports.  Bank U shows up as charged off of course but under balance due it says -0- !!  but it does show that they charged off the 42,500.00.  What does this mean?  it also says that it will come off of our credit report within 2 years. ??? 

We do not want to have to face foreclosure again on this account nor can we afford to have them come in and guarnish my husband’s wages.  We are barely getting by as it is. 

What can this Bank U legally do to get the charged off amount from us ? 

I’m scared.

Jean 

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Hi Jean,

Not enough information to answer intelligently.  Did you sign an agreement with Bank U when entering into your workout in 2003?  What did that specifically state? 

Charged-off is an accounting term.  The lien is still enforceable.  It would appear to me some amount of money is still owed on the “remaining part of the loan”, but in a bizarre way Bank U may be violating the FCRA by reporting the account with a zero balance.  That is, unless the party calling you is a junk debt buyer and not Bank U. 

Jean, you should consult an attorney on this one.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.