Posted on: 12th Feb, 2010 02:18 pm
when a property is foreclosed by the first lien holder, can the second lien holder still collect payment from you? isn't t loan wiped out since you not longer own the property and the loan/deed is secured by the property that you no longer own?
I can understand that charge off continues collection because they are UNSECURED but on secured loan with a deed of trust, how does that work when you no longer own the secured property?
Thank you in advance for any information you can provide.
I can understand that charge off continues collection because they are UNSECURED but on secured loan with a deed of trust, how does that work when you no longer own the secured property?
Thank you in advance for any information you can provide.
Hi iassa,
Though your property has been foreclosed by the first lien holder, the second lender still has the rights to collect the dues from you though the loan becomes an unsecured one. If the lender charges off the mortgage to a collection agency, then they would in turn collect the dues from you.
Though your property has been foreclosed by the first lien holder, the second lender still has the rights to collect the dues from you though the loan becomes an unsecured one. If the lender charges off the mortgage to a collection agency, then they would in turn collect the dues from you.