Legal Question in Real Estate Law in Georgia

Foreclosed house - loan went unsecured?

I unfortunately lost my property in Georgia due to foreclosure. I had a first and a 2nd mortgage; the 2nd was held by Beneficial. I did try to short sale using a 3rd party but neither lender was willing to work with me, and in January the first lender foreclosed. The 2nd lender, Beneficial, then took my loan which was secured by the property and made it an unsecured debt. They have since had a GA law firm contacting me at home and at work trying to get me to pay the debt. How can a secured loan be made unsecured? My credit is shot, I have no money to pay them. What could I possibly do in this situation?


Asked on 3/05/08, 9:16 am

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Foreclosed house - loan went unsecured?

The fact that the property was forclosed upon does not mean you do not still owe the amount you agreed to pay in the promissory notes, whether it is the first or second priority lenders. If he collateral is gone, the second priority lender will look to you to pay the debt, as they are doing.

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Answered on 3/05/08, 9:24 am
SHERRY RAGOLE RAGOLE & ASSOCIATES, LLC

Re: Foreclosed house - loan went unsecured?

I am sorry to hear about your loss. There is not much that I can add to the comments already posted; however, you may call my firm if you still have questions.

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Answered on 3/05/08, 9:46 am


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