Posted on: 26th Oct, 2009 11:41 am
I understand now that 2nd mortgage charge offs are still required to be paid. If the collection agency has the responsibility of collecting payments who is the holder of the lien on the property, the collection agency or the original 2nd mortgage holder??
hi newby,
after the second mortgage is charged off to the collection agency, the original mortgage holder has nothing to do with the debt. the collection agency gets right to collect the debt and take legal actions against you in case of non-payment of debt. after the charge off, the collection agency will hold the junior lien against the property. however, if there is no equity in the property, the second mortgage debt will become an unsecured debt and no such lien will exist.
after the second mortgage is charged off to the collection agency, the original mortgage holder has nothing to do with the debt. the collection agency gets right to collect the debt and take legal actions against you in case of non-payment of debt. after the charge off, the collection agency will hold the junior lien against the property. however, if there is no equity in the property, the second mortgage debt will become an unsecured debt and no such lien will exist.
collection agency will be holder of the lien on the property
My second mortgage in Hawaii went into charge-off for $500k. Can a lien be put on my other properties outside Hawaii?
Hi,
Unless the loan has been forgiven, you will remain responsible for the mortgage debt. The lender can sue you and get judgment against you. They can also put a lien on your other properties to collect the debt, especially in case you owe them a huge amount.
Unless the loan has been forgiven, you will remain responsible for the mortgage debt. The lender can sue you and get judgment against you. They can also put a lien on your other properties to collect the debt, especially in case you owe them a huge amount.