Behind on second MortgageBeyond the second mortgage
Depreciated loans (as opposed to waived debts) are still an undertaking that you have to repay.
As the first mortgage bank on your home was excluded, the second mortgage was also excluded and this bank loses its interest in the property. Whereas the second mortgage was cancelled, the obligation associated with the second mortgage was not. Instead, it became unfunded debts. Then after you did stop making payments on your second mortgage, your second mortgage financier finally realized that the mortgage was irrecoverable and opted to bill it off.
That means that the borrower writes the debts from their accounts, but it does not mean that he loses the right to recover the debts. Although the lending agency did a load off, the indebtedness will remain in full force and effect. How does a recharge work? Once the accounts have been cleared, the vendor will usually include the accounts in the collections process.
Creditors either act as their own collections agencies or transfer the claim to an external collections office (or resell it). Whichever of these units acts as a collecting agent, it is likely to make repeat phone and letter alerts to try to recover the debts.
You can take several different itineraries after the mortgage provider debits a second mortgage and forwards it to you for payment. The debtor must make payment on the owed amount or repay it in full; otherwise the collecting agent may take you to court in person to get the funds back (as long as the limitation period has not expired).