Collection agency demand payment of second loan.
Collection agency demand payment of second loan.
Hello to everyone,
First I'd like to say thank you in advance to whoever answer and any reply will be greatly appreciated.
Here are my info and questions.
-Original loan type is 80% (first loan) /15% (second loan) /5% (our downpayment) from one lender for both loans. It was 100% used as purchase money in getting the property along with my downpayment.
- The property foreclosed in 2009, located in Tracy, CA. It was our main or principal residence at that time for over 3 1/2 years.
- Received a 1099-C for the first loan but none for the second loan.
-Do I qualify under California's "Debt Forgiveness Act" for my 2nd loan?
-What happen if a Collection Agency try to collect for the 2nd loan. What should i do or options ?
Again thank you so much for any reply...
Mel A.
1 Answers
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Hi IAGANAD!
Welcome to forums!
The Debt Forgiveness Act will apply only when your debt has been forgiven by the lender. As you haven't received the 1099c form for the second mortgage, your mortgage may not have been forgiven by the lender. In such a situation, there are high chances that the second mortgage debt has been charged off. In such a situation, you need to contact the collection agency and try to set up a payment plan to pay off the debt.
Feel free to ask if you've further queries.
Sussane