Posted on: 15th Apr, 2010 10:01 am
I would like to know if anyone knows what percentage a collection company pays a mortgage holder for its bad debt. I have a 2nd mortgage that may be charged off, but the 2nd mortgage holder is telling me I will be responsible for the balance.
As your lender has charged off the account, he won't be able to collect the dues from you. It is the collection agency who will contact you and collect the dues. You will be responsible to pay off the whole amount to the collection agency. It is quite difficult to say how much a collection agency pays for the bad debt to the lender.
Thank you for the quick response. Is it typical for a 2nd mortgage holder to sell existing balance to a 3rd party collection company? If so, it is lawful and is the mortgage holder required to provide the company name and purchase amount?