Debt collection after foreclosure

...and cancellation of debt from April 2006

I have been contacted by a law firm demanding over $27,500 from a company I never heard of. From the information I received they are collecting a debt for a Mortgage Insurance Company that paid the mortgage company I had that foreclosed on me in April 2006. Now I have been contacted by another law firm demanding that amount plus interest. Can you tell me who to contact that can help me?

Comments for Debt collection after foreclosure

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Jul 17, 2009
collection after foreclosure
by: Gerri

If I understand your question correctly, it sounds like you have a couple of issues going on here:

1. You have been contacted by two different collection agencies over the same debt and

2. You have to figure out how to handle that debt.

The first thing you need to do is to find out who actually has the debt, and whether they own it and are trying to collect on behalf of the creditor (the mortgage insurance company) or they have purchased the debt outright.

Under federal debt collection laws, you have the right to request verification of the debt. You can send them a certified letter, return receipt requested, and ask them to verify the debt. Explain briefly in your letter that you have received contact from two agencies and need to know which one to deal with.

2. Then you need to figure out whether you can afford to pay the debt. Can you pay the full amount or can you settle it for less than the full balance? Or can you not afford to pay it now?

It would not be a bad idea to talk with a bankruptcy attorneyto find out what your rights and options are. If you can't afford to pay, you may need to consider bankruptcy. There's really no downside to at least getting an initial consultation.

Let us know how things go for you.

Mar 14, 2011
Foreclosure/debt collector 2
by: Anonymous

I wonder if the response above actually helped the individual who first commented. No offense, but I am looking at the same situation and those comments don't really seem to help me. I guess we'll see after I send a letter. I'm just frustrated because I don't understand how a debt collector and even be brought into the mix, but I guess Countrywide did a lot of shady stuff. My second was suppose to go away with the foreclosure, why is it still hanging around 2.5 yrs later with some random third party?

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