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I am hoping someone can shed some light on this.

I went through a Ch 7 two years ago in which I was able to keep my home.

I have a 2nd mortgage that was held through Citimortgage. I filed a hardship about 3 months ago due to work/income reasons and they are supposedly offering all of these programs to help people. About 6 weeks ago I get a letter from an insurance company saying they paid the mortgage in full. I was confused so I called Citi.... they say according to them my 2nd mortgage is paid in full, account closed, and off their books. So then, about 2 weeks after receving this letter from this insurance agency, I get a letter and phone calls from a DCS collection service saying this is now in collections with them. Can this insurance company send it to collections after only notifying me just 2 weeks?

I am so confused. Can DCS foreclose on me or is this now considered an unsecured debt? Should I call them and set up payments with them? Or is it illegal for them to collect on this since I went through a Ch 7? I never reaffirmed 1st or 2nd mortgage. According to Citimortgage, they are satisfied. I just don't know what the right thing to do is and I don't want to be scammed either and then it come back to haunt me because I still owe something.

If anyone has any advice or knows what I should do please help! Thank you!

sara · Posted: Thu Jun 04, 2009 2:29 am Post subject:

Hi frankief,

An insurance company cannot send the account to collections as the it has no direct relation with your mortgage account. I would suggest you to speak to your lender and your insurance company and check out what the exact issue is.

If the insurance company has not send the account into collections, then the collection agency is trying to scam you.

Take Care.

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2nd Mortgage and Collections Help