With change in the mortgage and real estate world still happening like the weather, consider this change that might be on the horizon. Imagine you went though a foreclosure and left your home equity or 2nd mortgage lender hanging out there with thousands unpaid.
Guess what? This old debt is being sold to the dreaded debt collector in those foreclosure cases where the lender never waived the right to collect on that debt by going against the homeowner personally.
This sounds pretty scary. After all, these collectors can come hound you and garnish your pay for multi-thousands of dollars. Perhaps at a time when you were just getting things back together again.
The most unfortunate part of this is that the homeowner would probably have no clue that this could happen. Their first notice would be the collector calling on the phone or sending threatening letters.
If you ever experience a foreclosure, find a good attorney to help you through the process. He/she may be able to get the lender to waive the right to collect against you in the future.
Once a collector has the right to collect against you and there are thousands of dollars owed, your only recourse might be filing bankruptcy.
Until my next post . . .
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