Posted on: 27th Mar, 2012 02:36 am
i have a rental property on which there is a 1st and 2nd mortgage. i haven’t paid mortgage payments for the last 5 months as i can't afford to pay it. searched for a renter but no luck... i tried short sale but the lender won't accept. i am resolved that this property will go into foreclosure. the fist mortgage holder was willing to accept offers but the second mortgage will accept nothing. i haven’t received foreclosure documents yet. however, i received a "collection letter" that the second mortgage holder has sent the debt to a collection agency. the first mortgage holder has done nothing to date. how do i answer this? i would have assumed this be a foreclosure? any advice is greatly appreciated on how to proceed.
Hi Odumba,
You should ask them to validate the debt in order to know whether or not the collection agency really owns the debt account. If they validate the debt account, then you will be liable for paying it off. You will have to contact them and set up a repayment plan which will help you in paying off the debts in an affordable manner.
Take care
You should ask them to validate the debt in order to know whether or not the collection agency really owns the debt account. If they validate the debt account, then you will be liable for paying it off. You will have to contact them and set up a repayment plan which will help you in paying off the debts in an affordable manner.
Take care
A foreclosure is very specific and must follow your states laws. For example, in CA, we use the deed of trust, with a trustee as the intermediary. If you stop paying your mortgage payments, after 90 days, the lender can file the notice of default. Once another 90 days has elapsed, the lender then will file a Notice of Trustee sale, published in the news paper for 3 weeks. Once the time has elapsed, the sale would take place. You would have 5 days before the sale date to pay off the entire loan, or the home would be sold. For your situation, you have the 2nd mortgage, which could have purchased the first or started foreclosure. It sounds like they know they will not get paid from this property, so they have sent you to collections. I would have an attorney review your case and see if there is anything that can be done. Have you tried for a deed in lieu? good luck-
