Legal Question in Real Estate Law in Colorado

secured mortgage

I purchased house and obtained a first and second mortgage. my house recently went through foreclosure proceedings. only the first loan was inclued in the foreclosure and the second per conversations I had with Aurora loan services was going to be written off. However they submitted the second loan to a collection agency. I explained to the collection agency that I no longer own the property, it is now under Aurora loan services, I did not understand why they were collecting. Collection agency stated that this second loan is now an unsecure loan- My question is how can a secure mortgage become unsecure? I've never heard of such a thing. I know Lehman Brothers-is under investigation for loan fraud- Aurora Loan -services Lehman Bro. What can I do? Who do I file a complaint with for their unfair practices?


Asked on 10/17/08, 12:38 pm

1 Answer from Attorneys
Mark Cohen The Cohen Law Group, A Professional Corporation

Re: secured mortgage

Unless you obtained a release from liability from the second mortgage holder, the second mortgager can still come after you for the debt. While the second mortgager is no longer secured because you don't own the property, the second mortgager is free to seek to collect from you. Depending on the size of the debt and your financial situation, you may want to consult a bankruptcy attorney.

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Answered on 10/17/08, 1:12 pm


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