I entered into foreclosure in 2008 on my house. The house was foreclosed and sold in 2008 by the bank to a new owner. On my credit report, both the 1st and 2nd were charged off as bad debt. According to the credit report, the balance on the 1st was listed as zero and the balance on the second reads $76,811 even though it was charged off to bad debt. Home Loan Services First Franklin, where I did the borrowing from originally, has been bought by Bank of America. Yesterday, I get a letter from a company named Select Portfolio Servicing, Inc. telling me that they are willing to settle the debt on the second mortgage if I send them $15,362.37 (which I don't have might I add) by June 24, 2011. It was my understanding that the second mortgage was a non-recourse loan because I live in California under the California Code of Civil Procedures section 580b, therefore allieviating me from the debt tied to this unfortunate and painful outcome. The first and second mortgage were taken at the same time to make the purchase on the house. The documentation I have shows that the money went from the bank to the escrow company to the seller. Am I liable for this defaulted 2nd mortgage payment request at this time? If I am not, any suggestions on what I should say to Select Portfolio Servicing, Inc. when I call or write to them in a letter to help close this claim? Thank you all ahead of time for your support. I thought I was past this period in my life.3rd Party 2nd Mortgage Claim After Foreclosure
- Thread Starter godijr
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I entered into foreclosure in 2008 on my house. The house was foreclosed and sold in 2008 by the bank to a new owner. On my credit report, both the 1st and 2nd were charged off as bad debt. According to the credit report, the balance on the 1st was listed as zero and the balance on the second reads $76,811 even though it was charged off to bad debt. Home Loan Services First Franklin, where I did the borrowing from originally, has been bought by Bank of America. Yesterday, I get a letter from a company named Select Portfolio Servicing, Inc. telling me that they are willing to settle the debt on the second mortgage if I send them $15,362.37 (which I don't have might I add) by June 24, 2011. It was my understanding that the second mortgage was a non-recourse loan because I live in California under the California Code of Civil Procedures section 580b, therefore allieviating me from the debt tied to this unfortunate and painful outcome. The first and second mortgage were taken at the same time to make the purchase on the house. The documentation I have shows that the money went from the bank to the escrow company to the seller. Am I liable for this defaulted 2nd mortgage payment request at this time? If I am not, any suggestions on what I should say to Select Portfolio Servicing, Inc. when I call or write to them in a letter to help close this claim? Thank you all ahead of time for your support. I thought I was past this period in my life.
army judge
Super Moderator
I suggest you not answer their demand letter.
You didn't owe them, why pay them?
There is no legal requirement for you communicate with them.
Secondly, you're in a position where a bankruptcy filing might help you. I suggest you discuss your options with a couple of bankruptcy attorneys. Your initial cinversation will be free.
They've taken your home. They have ruined your credit. Bsnkruptcy was created to give people a second chance. You've tried everything else, and what did that get you? Discuss a bankruptcy filing with a couple of local attorneys. Get yourself a new beginning.
Whatever you do, don't reply to those unsolicited letters. Those are meant only to further entangle and entrap you. Throw those damn things away, unopened. Remember what happened when Pandora opened that box?
You didn't owe them, why pay them?
There is no legal requirement for you communicate with them.
Secondly, you're in a position where a bankruptcy filing might help you. I suggest you discuss your options with a couple of bankruptcy attorneys. Your initial cinversation will be free.
They've taken your home. They have ruined your credit. Bsnkruptcy was created to give people a second chance. You've tried everything else, and what did that get you? Discuss a bankruptcy filing with a couple of local attorneys. Get yourself a new beginning.
Whatever you do, don't reply to those unsolicited letters. Those are meant only to further entangle and entrap you. Throw those damn things away, unopened. Remember what happened when Pandora opened that box?
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