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Collections Law/Not paying 2nd Mortgage
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Question
Hi, I own a house that I bought about a year ago at 534k in antioch, ca. Of course houses values are around 350k now. I called my First mortgage to let them know that I am struggling with the payment and they sent me a package to fill out where I asked for them to pleaes help me reducing the interest of 7.4% that i got and also the debt with them as I don't wish to loose my house, I just sent it yesterday (I haven't been more than 30 days late in my pymt). I did the same with our second lender but they didnt want to help me and I didn't make the payment this month. But I am scare, can the second lender take my house? Please advise I am desesperate and wishing that my 1st lender works with me. Thank you
It is not likely the second mortgage will take your home. They have a junior lien and would not get anything from a foreclosure sale since the first would have to be paid off first. However, they could potentially get a money judgment and go after wages if they cannot foreclose. If you want to fix the problem with the second mortgage call them back and ask for a supervisor in loss mitigation. If you cannot get through to someone in authority look for contact info for the executive offices and file a complaint with them. They should put you in touch with someone in authority who is willing to work it out.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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