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Mortgage Insurer Trying to Collect Debt

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  • 04-05-2011, 02:22 PM
    HelpMe1979
    Mortgage Insurer Trying to Collect Debt
    My question involves a foreclosure in the State of: NH

    The foreclosure on my house took place about a year ago. My credit report shows the second mortgage being "sold or transferred" about 6 months ago. The debt does not show up anywhere else on the credit report and I have not received any statements indicating that I owe money.

    A representative from Old Republic has just started calling trying to collect the debt I owe on my second mortgage. The rep says they are a mortgage insurance company and they paid the full value of the second mortgage to the original lender and now they are trying to recoup the money.

    What are my legal rights (if any)? Am I liable for the debt? They've offered to settle but the amount is still way more than I can afford to pay. Are there options or any programs available (aside from bankruptcy) to help me with this?

    Thanks for your advice!
  • 04-05-2011, 02:26 PM
    jk
    Re: Mortgage Insurer Trying to Collect Debt
    Quote:

    Am I liable for the debt?
    Is there any reason you believe you shouldn't be liable for the debt?
  • 04-05-2011, 02:53 PM
    HelpMe1979
    Re: Mortgage Insurer Trying to Collect Debt
    The legal answer (I'm not a lawyer) or the woe is me answer? I'll try the short version of my story:

    Both the 1st and 2nd mortgage were through the same lender (Bank of America). The second was used for improvements on the property. I put my house on the market and submitted several short sale offers to the bank. My short sale negotiator never got anywhere with any of them - they were "elevated to the 2nd level negotiator" but she could never get a human being on the phone. The house was supposed to go to Sherriff's sale a couple of times but she was notified both times that it was posponed since the short sales were in the process of being negotiated. A third time, she was notified of the same thing but the house went to auction anyway. We had no warning of this happening (since we had been told it was cancelled) and found out when the bank's realtor called our realtor and asked for the keys. They wound up selling the house for $20K less than the short sale offer we submitted. Since foreclosure I have not received anything "official" stating the foreclosure occurred or any statements saying I owed money to the bank (prior to a letter from Old Rebublic 1 year later). There was so much paperwork involved in obtaining the original mortgage, it's hard to believe they can take the house without a single document.

    I can't get a lawyer to explain this to me (they either say "I can't help you" and hang up or don't return my calls) so I turned to the internet. I've read things about non-recourse loans in certain states. My question is simply, is this one of them? Can a second mortgage be non-recourse?

    That's all I guess - if (as it seems) I am liable to pay, then do you know of any options that could help? I know the government has come up with some programs but without a lawyer or someone experienced in this to help me I have no idea what they are.

    Thanks again
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