There is a potentially scary and brutal development on the horizon for those that have been through a foreclosure and have 2nd mortgages or home equity loans that they have walked away from.
This debt is being sold to collection agencies by the lenders in instances where those that have been foreclosed upon have not gotten all parties to waive the right to collect in the future.
I have to tell you, this is pretty chilling to me.
Imagine going through the trauma of the a foreclosure. You have gotten your life back together and your feet underneath you. Then the phone starts ringing with collectors threatening you with wage garnishments or repayment plans for tens of thousands of dollars.
While technically this is a valid debt, the reality is that the former homeowner probably had no idea secondary mortgages or home equity loans could come back and get them. They thought that the foreclosure incident was done and the damage to their credit and reputation was over.
Folks, if you are in foreclosure or getting close to it, find a good real estate attorney to walk you through the process. They may be able to get all parties to waive their right to collect in the future or find alternatives for you that could not chase you far into the future. The cost of the attorney will be more than paid back in the pain you can avoid over the long term.
That’s because lenders have been quietly selling second mortgages and home equity lines left unpaid after foreclosures and short sales.
If they win court judgments, these collectors could have years to pursue borrowers with repayment plans, and even garnish their wages, said Scott CoBen, a Sacramento bankruptcy attorney.
“The only relief a consumer will have is entering into a debt negotiating plan or filing for bankruptcy,” said Sylvia Alayon, a vice president with the New York-based Consumer Mortgage Audit Center. via NewsOK
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EXECELLENT article! Getting an attorney is essential for dealing with a foreclosure. The Bank Has An Attorney And So Should You! Learn more about what a Foreclosure Defense Attorney can do for you.
http://www.waystostopforeclosure.com/
These banks went out of their way to entice consumers to drain their homes of their equity. Remember the big banners hanging inside your bank with pictures of a boat. And they made huge bonuses and commissions off the refinance boom. Now they are going to harass the consumer who has no equity, ruined credit and no home thanks to their practices. Great business practice.
[...] Agencies Buying Up Foreclosure Debt Jump to Comments Source: The Real Estate Bloggers April 20, [...]
These banks went out of their way to entice consumers to drain their homes of their equity. Remember the big banners hanging inside your bank with pictures of a boat. And they made huge bonuses and commissions off the refinance boom. Now they are going to harass the consumer who has no equity, ruined credit and no home thanks to their practices. Great business practice.
EXECELLENT article! Getting an attorney is essential for dealing with a foreclosure. The Bank Has An Attorney And So Should You! Learn more about what a Foreclosure Defense Attorney can do for you.
http://www.waystostopforeclosure.com/
These banks went out of their way to entice consumers to drain their homes of their equity. Remember the big banners hanging inside your bank with pictures of a boat. And they made huge bonuses and commissions off the refinance boom. Now they are going to harass the consumer who has no equity, ruined credit and no home thanks to their practices. Great business practice.
[...] Agencies Buying Up Foreclosure Debt Jump to Comments Source: The Real Estate Bloggers April 20, [...]
Very interesting article…it's a never ending process these days. I'm surprised I haven't heard of this before. Collection agencies should be the ones you are afraid of…not the bank!
Interesting information, thank you.
I wish my collection agency could collect what Morgan Lane Real Estate owes my company. Except Morgan Lane went bankrupt. Even though they bought Pacific Union.
What crud!
Relax guys-every state has a statute of limitations as to how long they have to pursue debt. Like home equity loans -is 4 yrs and loans 5 yrs. in the state of florida. Look up statute of limitations on the internet for your state. If you pay them anything then the statute of limitations starts again. Just like your bank they can't keep good records. The debt usually get sold over and over again and each time the record keeping gets worst and worst. So you can defend a law suit on that -like prove the debt, Want to find out exactly what you are up against run a search to find out if these people are suing or not. Most states they have to be licensed. Not licensed in your state cannot sue you in your state. In florida go to a county clerk of the court -like in Orlando go to orange county clerk of the court. Also find out if debt collectors have to be licensed in your state. If not they won't be collecting any debt from you. These people (collection agencies) are obnoxious and I don't talk to them-I just don't answer my phone. They will curse at you and call you a loser ect ect . Remember do not pay them or the statute of limitations starts over again. I think debt collectors and attorneys try to scare people by writing garage on these forums. Relax keep a cool head on you. The real estate market isn't coming back for yrs so don't worry. They garnish your wages get another job. Hahahahhaah!!!!
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