Jump to content

CA on a secured loan?


willingtocope
 Share

Recommended Posts

The story so far: BK7, discharged, house in foreclosure but not yet sold at sheriff's auction, 2nd mortgage sold to JDB.

I know the BK means we have no more liability for any of this. Its unlikely that foreclosure will generate enough to pay ANYTHING on the 2nd.

What does this mean to us? Can I look forward to nasty letters from the JDB? The FDCPA and FCRA don't really care if the debt is secured or not, right?

Link to comment
Share on other sites

Once the collateral is sold, there nothing to 'secure' that 2nd mortgage, its just another big unsecured debt. Since the debt was discharged in your bankruptcy, the same law applies to whoever bought themselves the worthless paper on your loan - it its NOT collectable and if they try you can nail them for contempt.

Link to comment
Share on other sites

Willing to cope/lady

Taking away the BK for a second, doesn't the foreclosure 2nd mortgage also qualify for a deficency, just like an auto that doesn't sell for what the loan balanace is?

My reasoning is that I have a similar situation where a property with a 2nd is going into foreclosure (two actually) the place didn't sell at all at the auction, so it is in the REO department now, I presume or heading there shortly. The 2nd note holder is probably going to get hosed completely, but in Tx the SOL for Real estate deficencies is 2 years as opposed to the 4 years for all other debts.

Does it matter which state or is there a good place to read up on this?

Thanks

Link to comment
Share on other sites

Its my understanding that yes foreclosure laws and procedures do vary from state to state. In Ohio at least, I'm pretty sure that you're right that without the BK we would have been stuck for the defincency. There are some differences between a mortgage and a car loan that has to with the fact that mortgages are so heavily loaded up front with interest. I'm not sure of the details, but its something about since the interest they charge is calculated on the entire life of the loan, and you only had the property for part of it, you're prepaid interest goes against the defincency.

You should certainly talk with a lawyer...maybe BK is right for you...

Link to comment
Share on other sites

LadyNRed Understood. I'm prepared to beat up on these guys if they come after us. I'm just trying to understand if there's any advantage to us here.

We're still living in the house. The bank has gotten their foreclosure judgement(?) from the courts and sold the 2nd mortgage. So does that mean if we wanted to reclaim (redeem?) (reaffirm?) the house, all we need do is somehow refi the first mortgage. I know that when the sheriff's sale happens, we can put in our bid on the place (assuming we had the money, which we don't)....

At the sheriff's sale, the 2nd holder is going to get screwed...I was just wondering if we had to wait until the sale to do that...

Link to comment
Share on other sites

  • 2 weeks later...

Okay, a quick update. Got letters today from "new servicer" informing us to send all payments to them. No info on how much, how soon, or anything of the sort. There's a sentence about notifing our insurance company that they're not on the policy...and then the mini-miranda at the bottom.

This is still just a 2nd mortgage we're talking about...don't know what these people expect.

Add it to the pile of "haven't got a clue" crisis'...

Link to comment
Share on other sites

In the shower this morning it occured to me that in their mini-miranda they stated "this is an attempt to collect a debt" but left out the part about the right to dispute.

I know there isn't anything they can do to cause us more harm than the BK and foreclosure already has, so I'm thinking I'm going to DV these guys and see if I can have a little fun with them...at this point I don't think I'll mention the BK...just see what records they can produce...

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.