In '98 our house was foreclosed on. At the time, we had a second on the house through The Money Store. They have been trying to collect the debt since then. I am in CA and don't know if they can collect after a foreclosure. Now the collection agency they are using states we have a judgement against us and called my employer stating the need to garnish my wages. We just bought a house last month and this supposed judgement did not show on any of our reports. I'm not sure what to do about this. It's not effecting my credit, just my mental health. We have a Sub-Prime Mortgage which goes from fixed to adjustable in 2 years, so I want to make sure we're A+ then. I need advise on how to get rid of these people.
I'm no lawyer, but I think you need to consult one immediately. Meanwhile, were I you, I'd not speak to these people over the phone anyone and request that they not call you at work. And get current copies of all your CR's. I know this has got to be stressful for you. But I think you'll want to take action now. Good luck to you.
The first place to start is the court file on the foreclosure. See if the Money Store was a participant in the original foreclosure. They had to be served in the case because they had an interest. It is possible that they filed the proper paperwork at that time and got a judgement against you. You did not say how much you participated in the lawsuit, if at all. If they do have a judgement, then it may not have been picked up on by the CRA's. That would explain why it is not on your credit report. Look at the court file first. Then, you need to see an attorney.
Shawnnar, I am assuming you did not file a BK to cover any deficiancy. We went through a foreclosure with a 125% mortgage ourselves, however we did file BK against first and second mortgage company. The second mortgage was sold to another mortgage company while we were in the middle of our BK proceedings. The second mortgage company sent us a collection letter in January trying to collect the debt. I called the mortgage company and told them they were included in our BK and that I had proof. I also contacted our attorney who in turn contacted them as well. Right now this account just shows as an "included in bankruptcy" account. Because they were included and the BK is discharged, they cannot attempt collection. I agree with the responses mentioned above, get a copy of the foreclosure court records and contact an attorney. If I remember correctly, if there is a deficiency and you did not file BK to discharge the deficiancy (either first or second mortgage), you would still be liable for the debt, but you need to get the court records to determine if you do indeed have a judgement against you. Unless there is a judgement, I am not sure if they can collect. For piece of mind I would seek a legal opinion. Who were you able to secure a sub-prime mortgage from and how much did you have to put down?
I don't remember the original loan company. The loan was sold before closing. We had to put 10% down and 10% interest for first 2 years. After that it an ARM were they can charge up to 16%. We did not file BK after the foreclosure. We had already filed once in 1992 and did not want to go through that again. This issue is the only one giving us grief. We were under the impression that in California, you are not responsible for a defiecency. I'll be calling around for lawyers today. Thanks for the help
I think that is an excellent idea. I keep forgetting that laws for this sort of thing can vary from state to state. Please let us know what you find out about this. I am curious. 10% down is not too bad in the sub-prime world. If you should remember the broker you used, please share. I keep running into this 20% down thing. Yes, you do want to get this taken care of so that you can refinances to a "normal" rate in a couple of years. Thanks for sharing the terms of your new mortgage. Good luck to you!
I don't remember the original loan company. The loan was sold before closing. We had to put 10% down and 10% interest for first 2 years. After that it an ARM were they can charge up to 16%. We did not file BK after the foreclosure. We had already filed once in 1992 and did not want to go through that again. This issue is the only one giving us grief. We were under the impression that in California, you are not responsible for a defiecency. I'll be calling around for lawyers today. Thanks for the help
