InnoVest Resource Management's Foreclosure Forum

Discussion Board Foreclosure Training Title Holding Trust Speaking Schedule Foreclosure Codes 50 State Foreclosure Basics Foreclosure Glossary 60+ Yrs Interest Rates News & Trends FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: 2nd foreclosure deficiency Posted by Jim V on March 01, 2002 at 2:07 PM In Reply to: 2nd foreclosure deficiency posted by Joan on March 01, 2002 at 8:48 AM : Three years ago in CA, we had 1st and 2nd mortgage foreclosures. The 2nd lender sold his accounts receivable to a collection agency who has filed a lawsuit against us for the deficiency. Can they do this? Quick Answer: Yes Longer Answer: Junior liens wiped from the title of a property by a senior lien's foreclosure action do not just disappear, they become unsecured debt. If the lender or a collection agency believes you have sufficient assets to justify the expense of seeking a judgement, they can. The collection company most likely did not pay much for the "bad" debt, settlement is one option or if the debt is very large, bankruptcy can discharge it. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Three years ago in CA, we had 1st and 2nd mortgage foreclosures. The 2nd lender sold his accounts receivable to a collection agency who has filed a lawsuit against us for the deficiency. Can they do this? : Quick Answer: Yes : Longer Answer: Junior liens wiped from the title of a property by a senior lien's foreclosure action do not just disappear, they become unsecured debt. If the lender or a collection agency believes you have sufficient assets to justify the expense of seeking a judgement, they can. The collection company most likely did not pay much for the "bad" debt, settlement is one option or if the debt is very large, bankruptcy can discharge it. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2002, InnoVest Resource Management

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455