The holder orf the 2nd can bully and bluster, they can call you all the time, but they cannot sue you.
Be sure that they do not put anything more on your Credit Report; tell them that you will sue them.
If they persist, call a Real Estate Attorney; it will be cheaper than paying them.
Good luck and may God bless
I also believe that Ron's answer is incorrect. From what I have been told there is only one case where this would hold true, and that is if the 2nd was a "purchase money" loan.
What many people do not understand is, when you borrow money to buy a home you sign two documents: (1) A note - which is a promise to pay and (2) A Deed of Trust - which is a pledge of your home as collateral for the promise to pay and creates a lien against your property. In a foreclosure, all junior liens are wiped out, but not the note. So the promise to pay stands even though the collateral no longer belongs to you.
You need to contact an attorney to find out if you actually owe this money. If you do, you might be able to negotiate a settlement with the lender for significantly less than what is owed. If you would like a referral to a great attorney, or if you want to discuss the specifics of your situation further, please feel free to contact me directly.
Good luck and Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
If the second loan was taken out after you purchased the home as a HELOC or for any purpose other then purchasing your home when you originally took possession the lender has the right to pursue you for the deficiency. They will obtain a deficiency judgment against you and begin their pursuit in collecting whatever they can.
Your best bet is to talk this over with a real estate attorney or tax advisor in order to plan how you need to deal with this. Many of my clients end up filing bk to wipe out the debt. Not fun but you don't want to be left dragging around a constant reminder of the past like a ball and chain around your ankle. Just deal with it swiftly and without looking back. Life goes on!
Good luck to you and happy new year!
Diane Wheatley, Broker
This is not to be construed as legal advise. Please consult with the appropriate professionals educated and trained in these types of scenarios for proper guidance.
Our advise to people being pursued for monies they do not have is to show the collector that there is no money for them to pursue and it would be a waist of their time and money to continue to pursue a noncollectable debt. A CPA certified personal financial statement usually works well.
Buy home after foreclosure, short sale, deed-in-lieu-of or bankruptcy expert
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