Posted on: 18th Apr, 2009 01:50 pm
My home went into foreclosure. Last documentation I received was that the attorney for the 1st mortgage company was filing with the court in December 2008. I have vacated the property and stopped paying the 2nd mortgage as well. Initially both mortgages were all done with Indymac
Bank. About the 2nd year into the mortgages, Indymac sold my 2nd mortgage to EMC. Now EMC has put me in collections for their share. The house hasn't sold yet though thru the foreclosure process? Is that allowed? How should I proceed? Any advice will be greatly appreciated.
Bank. About the 2nd year into the mortgages, Indymac sold my 2nd mortgage to EMC. Now EMC has put me in collections for their share. The house hasn't sold yet though thru the foreclosure process? Is that allowed? How should I proceed? Any advice will be greatly appreciated.
Hi
The mortgage company can sell off the loan. This is allowed. As far as i'm aware of, they do this for various tax and accounting purposes. But it doesn't make much of a difference to the borrower because he will still have to pay it off. If you do not pay off the second loan, the collection agency can obtain a judgment against you.
The mortgage company can sell off the loan. This is allowed. As far as i'm aware of, they do this for various tax and accounting purposes. But it doesn't make much of a difference to the borrower because he will still have to pay it off. If you do not pay off the second loan, the collection agency can obtain a judgment against you.
Thanks for your reply. What I've done is send a debt validation letter to the collection agency via certified mail. Do you suggest I also do anything else?
Hi
I believe this will be enough for the moment. Now you'll have to wait for 30 days to hear back from the collection agency. Let's wait and see how they respond to this letter. By the way, is the property upside down? Will there be any money left after paying off the first mortgage with the sale proceeds?
I believe this will be enough for the moment. Now you'll have to wait for 30 days to hear back from the collection agency. Let's wait and see how they respond to this letter. By the way, is the property upside down? Will there be any money left after paying off the first mortgage with the sale proceeds?
They actually just came back today with a copy of the mortgage document that I signed. I guess this validates the debt. I don't know if any money will be left after paying off the 1st mortgage company since the sale hasn't occurred yet. I also vacated the property as soon as I received the letter from the court advising of the foreclosure. I am seriously considering consulting a bankruptcy attorney since I don't have the money to pay off the 2nd mortgage ($70k) Any other suggestions?
I think you need to talk to bankrptcy attorney soon. At least they can give you some directions based on your current situation.
Hi irisfigueroa,
In addition to the original mortgage contranct signed between you and the mortgage company, they should also provide you with the account statement showing the balance amount of the debt and a proof that the original mortgage holder had indeed given them the rights to collect the debt on their behalf. If you have got enough debt validation proof from the collection agency, you should start negotiating with them for a debt settlement.
Thanks,
Jerry
In addition to the original mortgage contranct signed between you and the mortgage company, they should also provide you with the account statement showing the balance amount of the debt and a proof that the original mortgage holder had indeed given them the rights to collect the debt on their behalf. If you have got enough debt validation proof from the collection agency, you should start negotiating with them for a debt settlement.
Thanks,
Jerry