We had a short sale fall through and the bank took the home back. Recently, I got a letter in the mail that the 2nd was sold to another company AFTER the sale date. Now I am getting collection calls from the new company. Can they still collect even if I don’t own the home anymore? If so, what can I do about it? Obviously I couldn’t pay for the home before the foreclosure, what makes them think I can pay on a property I no longer own?
Yes the second lien holder can still collect. The debt is not forgiven. Only the collateral on the lien is gone.
What state is the property located in? I know that first mortgage holders can and do go after deficient settlements and the the deals that I have seen have offered the 2nd and 3rd just pennies on the dollar while negotiating the Short Sale to avoid this problem