Home was sold at auction..can the they still collect on the 2nd loan?
(Los Angeles, CA)
My home foreclosed on and sold at auction on June 2011 in California.I received a 1099c for cancellation from Bank of America. However, apparently the 2nd was sold prior to the sale of the property. They are trying to collect this debt from me and I no longer have the house. This debt should have been cancelled with the sale of the house right? Please let me know if there are some laws that I may refer to so that I can get rid of this second if possible.
Hopeful in CA
Reply from DebtCollectionAnswers.com:
You'll need to consult with an attorney who can help figure out whether that loan was a recourse or non-recourse loan. The fact that you received a 1099-c, or the fact that the home was sold at auction, does not mean that you are not liable for a deficiency. On the other hand, some home loans in California are non-recourse loans, which means you may not be responsible for this. Again, though, you are going to need to consult an attorney. Many bankruptcy attorneys are familiar with these issues so that would be a place for you to start. If it turns out that you are responsible for this debt then you may be able to discharge it in bankruptcy.
You can call a bankruptcy attorney now toll-free at (877) 248-2510.
Click here to post comments
Return to Debt Collection Questions.