Question on Mortgage Status?

Deal Score0

A letter comes in the mail certified that I signed for.

I have NO idea what it means.

Dear Mortgagor,

This letter serves as notice that pursuant to investor approval, PNC Bank has been authorized to discontinue collection and foreclosure activity with respect to the property located at:XXX XXX XXX XXXX.

This means that we will no longer carry your loan on our books as an active account. This decision is a result of our loan review and:

1. your delinquency and your failure to enter into a satisfactory repayment agreement with us to cure the delinquency or payoff the loan.

2. the lack of collateral value

This does not release you from your obligation to payoff your loan, we may however release our lien against the property if the forst mortgage/lien holder has taken the property to foreclosure sale.

The following is a report of your account balance as of February 3, 2010 – $ 98,437.11

PNC will no longer be responsible for maintaining and active account relationship. The following is a report of your account status at time of write-off:

Non-Escrow account – National City Mortgage Co. Has not been responsible for an escrow impound account at the time of write-off.

PNC will report this decision to the Credit Bureau as a code 97 (unpaid balance reported as a loss by credit grantor). You may resolve this issue by contacting PNC to arrange payment in full.

If you need to discuss alternatives, please contact PNC at XXX-XXX-XXXX

WHAT DOES THIS MEAN??? What are they doing exactly with our loan? Are we in collections?? If we eventually sell this money pit what will happen with the $ 76k we owe??

I am in Illinois if that matters

2 Comments
  1. Reply
    Caveat Emptor
    May 2, 2011 at 6:56 am

    It sounds like this concerns a 2nd mortgage and they are writing it off on their books as noncollectable since you are in default on the loan. That doesn’t mean you don’t still owe it.

  2. Reply
    GVD
    May 2, 2011 at 7:35 am

    It’s a charge off, they are no longer going to try to collect it from you, however, they may sell it to a collection agency, it will destroy your credit showing as a 98K unpaid charge off. You won’t be able to buy a stick of gum on credit with this on there. If you decide to sell it, they will most certainly try to collect but if the first lien holder takes it to foreclosure, they will release the lien against it. In other words, they will never allow you to sell it and make a penny as long as you owe them.

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