Cana second mortgage holdercollect after they took the house on a deed in lieu?

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Cana second mortgage holdercollect after they took the house on a deed in lieu?

Approximately 4 years ago we had a first and second mortgage with HSBC. We agreed to a deed in lieu of payment and gave up the house. An attorney firm had me served with a summons in person at my residence today. The second is for $8600. Can they garnish wages or take property?

Asked on January 22, 2012 under Real Estate Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If the lender secured by the second mortgage on the property that you are writing about did not loan on the property when you purchased it (purchase money loan) and you gave to the first lender secured by a mortgage a deed in lieu of foreclosure, the junior lender can bring a legal action for you concerning the loan in second position that is not being paid on.

This seems to be what has happened since you were recently served with a summons and complaint over the second loan at your residence. I suggest that you consult with a real estate attorney to help you regarding this new lawsuit.


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