Do mortgage charge offs attach to new property deed?

[Tony Ferrara]

Hello everyone I'm so glad I found this website!

My wife and I have saved a substantial amount of money and ready to start investing in real estate, we are looking to do a cash purchase deal on a home or two flat and use as a rental or potential flip. 

The potential problem: We purchased our current home with a primary and secondary mortgage in 2008, our home is now underwater significantly and a couple of years ago we decided to stop paying the second mortgage. The second mortgage shows off as a charge off in our records but the second mortgage never took further auction such as foreclosure or did a judgment against us. 

The question that we have is: when we close on our new investment home (cash purchase), would the closing title company automatically attach the charge off to the new property? 

I have read this website but have not found a clear answer, from what I understand is that Liens and Judgments on a person do attached to any new purchased property by that person but what about charge offs? this charge off does not appear in the record of deeds because the mortgage company has not foreclose on it. 

Thanks!

[Wayne Brooks]

No. A "charge off" is just a credit reporting entry.  It is not a judgment and would not "attach" to anything.  Now, if they got a court judgment I assume it would attach, but that would be state specific.