How to Keep Collectors from Pursing You on a Foreclosed Loan

Even when you foreclose on a home some unscrupulous lenders will send you to collections. Especially if you have a second mortgage or a HELOC on your foreclosed property. So what do you do, how do you stop the harassment and keep the collectors from contacting you?

Difficulty: Moderately Easy

Instructions

1. If you are being pursued by collection agents in regards to a second mortgage or HELOC you took out on your foreclosed property, you may need to make sure the second has been notified of the foreclosure. Sometimes communication between lenders is nil. Contact the second and let them know that the property has been foreclosed on and there is nothing there to secure that loan any longer.

2. Make sure to also send notification to the lender by certified mail, so that you have a copy for your personal records. Also send the same notification to the collection agency.

3. The lender may try to convince you to refinance your loan into an amortized installment loan to keep the negative entry off your credit. But if you have already foreclosed, the damage is done and paying back this loan will not help.

Resources

• How to Avoid and STOP Debt Collection Harassment