What can i do about a second mortgage that has been sent to collections after house was foreclosed upon?

they are trying to collect 100k after the house already foreclosed, what can i doWhat can i do about a second mortgage that has been sent to collections after house was foreclosed upon?
This was a second mortgage, cash they gave you, and apparently you spent.





Yes, they can collect this, you owe the money.





They can seize your assets and garnish you wages until you have repaid them.





The CA code is for people who only bought a house, never took any cash out of it, it does not cover second mortgages. You can not take that kind of money, stick it in an account and expect it to be treated as a gift.What can i do about a second mortgage that has been sent to collections after house was foreclosed upon?
Actually, that's Code of Civil Procedure 580b. And that only applies to purchase money mortgages. If your 2nd mortgage was in the form of one of those 80/20 finances, where the 2nd was used as part of the purchase monies, then 580b is applicable. If it was a HELOC, then 580b does not apply. But, either way, if they want to collect, then at a minimum they must sue you in court and obtain a judgment first, as you apparently already know.






Welcome to the world of deficiency judgments (it's not a judgment yet..but it will be very soon).





I'm very, very glad you posted this question--it will serve as an excellent example to those that think if they just simply walk away--that's the end of it.





Well, unfortunately, you have discovered, it's not.





All you can do at this point is see if the federal bankruptcy court will allow you to bankrupt the $100K and this is getting harder and harder to do.





If you just walked away from the house because it was declining in value, fully expect for your request for bankruptcy protection to be denied.
The security interest (lien) in the house of the second mortgage was wiped out, but not your underlying debt. You got the money, now you gotta pay it back.





See if you can work out a deal, not with collections but with lender. Otherwise it's bankruptcy.
you should have done a short sale (rather than let it go to foreclosure) because then you might have been able to get the balance forgiven - but since you didn't - your last option is bankruptcy (good luck since you have to qualify) or having that debt on your credit for a long time affecting all your future buying power
You should probably speak to an attorney about it. The creditor probably has the right to go after you. The fact that the house has already been foreclosed upon is not relevant.