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Unfortunately, I had to foreclose on my first home I purchased. The foreclosure happend about 5 years ago. I had 2 mortgages on the home. One was for the purchase of the home and the 2nd was for the down payment. I was under the impression that when the house foreclosed, this would apply to both mortgages. The house was sold for less that what was owed between the two mortgages. The bank that issued the loan for the down payment has sent the debt to collections. Can this collection agency take me to court over this?
This is in Minnesota and from my research, we are a non-recourse state. This would mean the lender can only seize the property and any money owed beyond that would be a loss if I’m not mistaken. Anyone have any input on this?
Asked
6 months ago
billy
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The first thing I would do is send a dispute letter and/or Cease and Desist Letter to discontinue collections to the collections company. Contact an attorney for more information. I don’t know what the next step would be. P.S. Send your letters certified return receipt requested.