Posted on: 01st Oct, 2010 12:56 pm
I orginally bought a house with adjustable rate.Aafter one year the rate went up and i could not afford the mortage, so I refinanced it and split 80/20. I rent the house out but was not able to collect rent to cover the mortgage. After couple of years, I did a short sale. Both 1st and 2nd lenders agreed to short sale. The sale was completed.
Now I get a call from collection agency daily asking me to pay back the 2nd loan.
My questions are:
Does the collection agency has to right to go after me?
How can I stop the phone call from the agency and have them leave me alone?
Will they go after my other property or garnish my bank account?
Now I get a call from collection agency daily asking me to pay back the 2nd loan.
My questions are:
Does the collection agency has to right to go after me?
How can I stop the phone call from the agency and have them leave me alone?
Will they go after my other property or garnish my bank account?
the second mortgage lender must have charged off the loan and assigned your account to a collection agency if you've not paid the deficient balance to them. in such a situation, the collection agency has the rights to come after you for the payment. unless you negotiate with them and pay off the dues, you'll not be able to stop their phone calls. in order to garnish your bank account or place lien on your other properties, the collection agency will have to file a judgment against you. unless they get the judgment, they cannot take any steps.
Thanks for the valuable information.I am highly benefited by this.