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The first mortgage lender as well as the collection agency can try to foreclose the property in order to recover the debt. However, if the collection agency does so, it may have to pay off the debts of the first mortgage lender before claiming it's own debts. So, in most cases, the collection agency does not foreclose the property. Rather, they can place a lien on your property after getting a judgment. In case of a deed in lieu of foreclosure, you will be able to qualify for Mortgage Debt Relief Act.
Before you choose default, foreclosure, or bankruptcy... Go online and review the following websites and choose the one that can best help you with your problem. Make sure that you are on their website and not someone else's: FHA . gov HUD Fannie Mae Freddie Mac Good luck with your home.
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