1st Mtg foreclosed on us Aug 06, 2 years later the 2nd mortgage is trying to collect. What are my options?

our 1st mtg forelcosed and new owners bought oct 07, we have not heard anything form anyone and now 2 years later I received a letter from a collection agency representing my second mtg, which by the way is a new lender form when we first bought the house it now it merrill lynch mtg. What are my options? I can not afford the second mortgage and I was under the impression that if the first forclosed so did the 2nd, but come to find out that is not correct. Any suggestions. i have tried to get a free consult with a atty and have nto found any luck with that.

talk with a lawyer. If the 1st mortgage foreclosed and the 2nd mortgage didn’t stop it, then their debt is lost.

HOWEVER, they can still issue a 1099. And with a 1099, the IRS will tax you.

Talk with a lawyer.

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3 Comments.

  1. Don’t pay anything. There had to be a clear title for the house to be sold… sue the title company that gave a clear title on the house…. sue the mortgege company that is harrassing you and forget about it what can they do to you… it is a dead debt…
    References :

  2. Real Estate Guy

    talk with a lawyer. If the 1st mortgage foreclosed and the 2nd mortgage didn’t stop it, then their debt is lost.

    HOWEVER, they can still issue a 1099. And with a 1099, the IRS will tax you.

    Talk with a lawyer.

    References :

  3. The scenario you describe is happening a lot recently. The loans belonging to the 2nd lender have been "sold" to investors who paid 5¢ on the dollar for these "non-performing" loans. Then they go out and try to collect from you. In some cases you can pay them 6¢ on the dollar and they still make a profit…. and your credit is now cleared up. See if you can do this in person. Telephone and email are not very successful..
    References :

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