I have a 80-20 home mortgage, and I will loose my house to foreclosure soon. I can’t afford to pay the mortgage, with my current income and no plan to save it from foreclosure. My lender sold my 2nd mortgage(HELOC) to a debt collector, and now they harassing me, and threatening me to sue me. Is it possible for me to file bankruptcy, and eliminate the 2nd mortgage debt? Even after bankruptcy can they come after me? If not what shall I do? I don’t have any money and all my savings are gone.
Yes.
Probably — but consult a bankruptcy attorney to be sure.
No, not if the bankruptcy court approves your plan.
Ignore them and send them a "drop dead" letter under the fair debt collection practices act. The "good news" is that they cannot get blood from a stone. The fact that your HELOC lender sold your loan to a debt collection agency means that they (the experts on your loan) put the collection by all legal and usual methods as unlikely. When a lender sells debt to collection agencies they generally do so for 10 cents on the dollar or less. Thinking about that logically, you should guess that a bank would only do that if they thought they had no chance in hell of collecting 10 cents on the dollar from you in a reasonable amount of time.
In theory, without bankruptcy protection, the debt collector could get a judgment against you and petition the court to garnish your wages to pay for the judgment. It does sometimes happen with second mortgages…but your lenders action (selling to a debt collector) tells me that in your area you might get a judgment, but the judge isn’t going to order a garnishment. Thus…all the debt collector can do is call and call and call.
Yes.
Probably — but consult a bankruptcy attorney to be sure.
No, not if the bankruptcy court approves your plan.
Ignore them and send them a "drop dead" letter under the fair debt collection practices act. The "good news" is that they cannot get blood from a stone. The fact that your HELOC lender sold your loan to a debt collection agency means that they (the experts on your loan) put the collection by all legal and usual methods as unlikely. When a lender sells debt to collection agencies they generally do so for 10 cents on the dollar or less. Thinking about that logically, you should guess that a bank would only do that if they thought they had no chance in hell of collecting 10 cents on the dollar from you in a reasonable amount of time.
In theory, without bankruptcy protection, the debt collector could get a judgment against you and petition the court to garnish your wages to pay for the judgment. It does sometimes happen with second mortgages…but your lenders action (selling to a debt collector) tells me that in your area you might get a judgment, but the judge isn’t going to order a garnishment. Thus…all the debt collector can do is call and call and call.
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Hello there,
I might be able to help if you are in melbourne that is.
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