Results 1 to 3 of 3
  1. #1
    Join Date
    Apr 2011
    Posts
    4

    Default Debt Collection on Second Mortgage from Foreclosed Property

    My question involves a foreclosure in the State of: NH

    Hello,
    Let me tell you what I know. I had a 1st and 2nd mortgage through Bank of America on a house in NH. I foreclosed in January 2010 when they sold my house at auction (after notifying my short sale negotiator that the sale had been cancelled). The first mortgage was closed that month and shows a zero balance on my credit report. The second mortgage shows as "transferred to another lender" in September 2010. It also shows a zero balance on my credit report.

    I have not received a single communication, statement, etc. from any lender indicating that a second mortgage was due since the foreclosure. Just this month I received a letter from Old Republic stating that my second mortgage, plus interest, is due immediately.

    I read that buying and collecting debt is big business for these companies and that they aren't always honest about the debt you owe. My question is, never having received a statement indicating how much I know or to whom I owe it prior to or since receipt of this letter, and also the fact that the debt doesn't show up on my credit report, what is the best way to determine whether I really owe money, how much, and to whom?

    I'm not sure if this is relevant, but I also have never received any paperwork from the lender, court, state, etc. regarding the foreclosure. I had to fill out so much paperwork to buy the house that it seems strange to me that they could take it without saying so much as a word to me about it. I heard about the foreclosure from my realtor who was trying to sell the house when the bank's realtor contacted her for the keys.

    Thanks so much for your help.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Debt Collection on Second Mortgage from Foreclosed Property

    By "second mortgage" you mean what? A purchase money mortgage? A HELOC?

    If you aren't sure how the balance being alleged by a creditor was reached, try asking for an accounting.

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Debt Collection on Second Mortgage from Foreclosed Property

    I'm not sure if this is relevant, but I also have never received any paperwork from the lender, court, state, etc. regarding the foreclosure. I had to fill out so much paperwork to buy the house that it seems strange to me that they could take it without saying so much as a word to me about it.
    You likely had a power of sale clause in your mortgage which allows the lender to sell the house rather than going through the courts to obtain a judgment. Most states still have requirements for publishing a notice of intent to sell though.

    1. Sponsored Links
       

Similar Threads

  1. Foreclosure: Collection on a Foreclosed Junior Loan from Debt Collection Company
    By cocoa in forum Buying, Selling and Conveying Real Estate
    Replies: 4
    Last Post: 03-31-2011, 06:44 PM
  2. Foreclosure: Foreclosed on a Wrap Mortgage
    By azladyrider in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 09-08-2010, 12:53 PM
  3. Foreclosure: Can 2nd Mortgage Come After Me for Their Money After the 1st Already Foreclosed
    By dimond in forum Buying, Selling and Conveying Real Estate
    Replies: 5
    Last Post: 01-12-2009, 08:42 PM
  4. Foreclosure: HOA Foreclosed.What About the First Mortgage
    By nadylime in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 12-10-2008, 10:52 PM
  5. Debt Collectors: Debt Collection and Non-Exempt Property
    By hoosiergal5302 in forum Debts and Collections
    Replies: 1
    Last Post: 11-17-2005, 06:15 PM
 
 
Sponsored Links

Legal Help, Information and Resources