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Foreclosure w/2nd question

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Ladynred

Senior Member
What is the name of your state? TN

But the property foreclosed on is in the state of South Carolina.

My question, as I stated above, has to do with a property that had a primary and a 2nd (home equity loan) mortgage against it.

The primary lender foreclosed on the property last year and it was finally sold at auction this past December. It took the bank almost a year to sell the house and the sale actually brought about $2K more than what was owed to the primary.

The 2nd is, to me, a bit trickier. The original 2nd lender (First Plus Financial) went into Chapter 11 a little over 2 years ago. As far as I can determine, another mortgage company, Countrywide, bought out the First Plus loans and I started getting statements from them, and I was sending payments to Countrywide.

Now, when the 1st mortgage went into foreclosure, I didn't hear anything from Countrywide on it, just the usual statements. They called, I told them the primary lender was foreclosing on the house. I figured that the 2 companies would at least communicate and the secondary would have some knowledge and perhaps input when the house sold. As far as I can tell, based on papers I received during the course of the year the bank was trying to sell the house, Countrywide apparently had no communication with the primary lender at all. Countrywide eventually turned my account over to a collection agency, and, according to their letters and subsequent phone calls, didn't even KNOW about the foreclosure. I told them repeatedly and gave them the lawyers information. I never got anything from the CA that even acknowledged that the property was in foreclosure until at least 2 months after the sale !!!

I guess my question is.. how could this be ?? Why would the secondary lender NOT be involved, to some extent, when the property securing the equity loan was being sold ?? Wouldn't the secondary lender have anything to say about the sale or even attempt to put some claim on any money from the sale ? There WAS about 2K left over, but they never made a claim for it. That amount is nothing compared to the loan amount, but I figured they'd be out there grabbing at every penny. Not true. I got a notice from the equity court several months after the sale that there were 'surplus funds' I could claim. I figured 'what the heck' and put in my claim.. and I got it, which surprised the heck outta me !! The only other claimant was the homeowners assn who took their share.. that's it.

I'm confused.. anyone know anything about SC foreclosure laws and how this would customarily work ??

:confused:
Thanks !!
 


HomeGuru

Senior Member
The only thing I can think of is the problem was either due to mismanagement of the account by the lender or the lender knew that there was little or no money, thus took no action. At the very least the lender should have joined in on the foreclosure and gotten a judgement against you for the difference.
You still owe them the money and they can still go after you for nonpayment.
 
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Ladynred

Senior Member
Well, they haven't gotten a judgement YET, but I figure its coming at some point. The collection agency is still calling me. I told them back in Feb that I had lost my job and all I had was unemployment coming in. I had almost expected them to go for the judgement before now, but (knock on wood) they haven't proceeded with it yet. If they do, well.. filing for bankruptcy for sure ! I know I won't survive with them garnishing my wages until I'm in my grave :mad:

Thanks !!!
 

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