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aysojaguar · Joined: 14 Aug 2010 Posts: 5 2.85 Dollars($)

We live in CA. After nearly 2yrs we finally got a mod from Wells Fargo on our 1st. Our 2nd (also WF) just charged off the loan. The collection agency tell us they did not buy the loan but are only acting on WF's behalf to try and collect? This doesn't sound right as I'm sure WF has its own collections dept! Is the c/a bs'ng us? The c/a did offer a deal but it was just before we got the mod approved for the first and we were reluctant to agree to anything until we knew for sure the 1st was locked up. The c/a is threatening "legal action" but if it IS true they are only acting for WF how can they seek a judgement against us? I thought that if WF still owns the loan that they could foreclose or put a lien on the home but not garnish wages? It makes sense to me that the c/a could do so if they bought the loan and WF no longer has an interest in it that if we do not pay them they could seek a judgement but that would also tell me that the loan has now become unsecured? I keep reading conflicting posts stating that because a loan is chrged off it is still secured? If we do in fact get taken to court we're wondering if it would be worthwhile to state our case to a judge as we did try to work with the 2nd the entire time we were seeking help w/1st only to be told that they wouldn't do anything until they knew what the 1st was going to do. So it was a slap in the face when after 20 mos of bustin' ass (we did this all on our own so you can imagine how many times we had to submit and resubmit and the phone calls etc etc etc) when we finally got somewhere just to have the 2nd charge off when all that time we were acting in good faith with them.

adonis · Posted: Sun Aug 15, 2010 8:18 pm Post subject:

Hi aysojaguar,

Unless the account has been sold off to the collection agency by Wells Fargo, they cannot take any legal actions against you. If Wells Fargo stills owns the loan, then they can try to get a judgment against you in order to garnish your wages. Once the loan is charged off, it becomes unsecured.

Posted: Mon Aug 16, 2010 7:19 pm Post subject:

Hmmm ok. So if the c/a doesn't own the loan and can't get some kind of payoff/pymt arrangement with us then WF can seek a judgement against us because they still own the loan AND it is now unsecured because they charged it off? Guess my next question would be whether its the c/a or WF they gotta' know you're going to file BK as soon as they try?????

smithsussane · Posted: Tue Aug 17, 2010 12:25 am Post subject:

Hi Guest!

Welcome to forums!

Unless the lender completely charges off the loan, it won't be considered as unsecured. If the loan is not charged off, then the lender can file a lawsuit and seek a judgment against you.

You can file bankruptcy in order to get rid of the second mortgage. The lender or the collection agency has nothing to say in this matter.

Feel free to ask if you've further queries.

Sussane

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