I am looking for some solid advice and thank you in advance to all that reply. I owned a home in Long Island NY with a $365K 1st and a $100k 2nd. My income dropped drastically and I could not keep up on payments. I received FC notice. I was hoping my income would recover, so I filed a 13 in May of 07, then filed a second chap 13 about 4 months later. My income never recovered and I defaulted on making the chap 13 payments and my house was foreclosed in Jan 2008. The house was sold in March 08 for the balance owed on the first. My credit report shows the first mortgage in FC, then being fully satisfied. However the 2nd mortgage was obvously not satisfied. The second mortgage was sold to a Collection Agency - Realtime Resolutions. For the longest time they were dormant in reporting as they stopped reporting in Dec of 08. July of 09 I moved from NY to NC. My income is back up and my living expenses have been dramatically reduced. I am very stabalized. Last year in 2011 I attempted to obtain a new mortgage and the broker (without my knowledge) called the collection company to verify that it was in fact the defaulted amount for the second lien (which it clearly was) and he woke a sleeping giant and they are now reporting me each month as being late, I am receiving phone calls daily as well as a letter stating they want to work it out with me on a constant basis. All the lenders were very scared about that second, plus i did not have adequate re-established tradelines, so I never obtained a new mortgage. However I am establishing new GOOD tradelines and want to buy in 12 months.
I obvously do not want to pay nor can I pay the $100k. The credit report is showing it as a charge off and is listed as mortgage debt (installment i believe). Here are my questions, and feel free to answer any questions I may have failed to ask:
1. What is my liability on this 2nd mortgage on credit? Meaning, do they have the right to collect or issue a judgment and come after me?
2. Is there a period of time where they must remove it from my credit whether it was paid or not, or I can petition to have it removed because of the time that has lapsed?
3. Do they have a right to come after me for this 2nd mortgage, since the property was the collateral and the first lien bank sold it?
4. What power do they have over me, since they no longer have any collateral position against me?
5. Should I follow the dispute process to try to get them to remove it?
6. What are the best practices I should follow to get this either off my credit, or so that it has minimal impact on me obtaining a new mortgage in 12 months.
Thank you
- Jim