Posted on: 02nd Jun, 2011 06:34 pm
I bought my house on an ARM loan with MI. I then refi it a couple years later to an 80/15 1st and 2nd to get a fixed rate on the 1st and get rid of the MI. Well i feel on hard times and my house is in foreclosure. I got a letter from the 2nd lien holder saying they were sending me to collections. Is this a scare tactic or can they really put me in collections leading to a judgement?
hi tcd!
welcome to forums!
if the second mortgage lender does not receive his payments on time, then he will have the rights to send your account to collections or he can even file a lawsuit against you.
feel free to ask if you've further queries.
sussane
welcome to forums!
if the second mortgage lender does not receive his payments on time, then he will have the rights to send your account to collections or he can even file a lawsuit against you.
feel free to ask if you've further queries.
sussane
Your second mortgage lender has apparently decided that due to a lack of equity their lien is not going to be taken out when the foreclosure takes place. As a result, they've no doubt charged off the loan, thereby taking it off their book of assets. Subsequently, they likely sold the debt to the collection agency, thereby reaping a few shekels in return.
The collection agency is now in charge, it would appear; and the lender is out of the picture. I would say it's safe to predict that the collection agency might eventually sue if they felt it beneficial to do so.
The collection agency is now in charge, it would appear; and the lender is out of the picture. I would say it's safe to predict that the collection agency might eventually sue if they felt it beneficial to do so.
