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They (collection agency) would first have to buy the mortgage rights from the original creditor (usually for just pennies on the dollar), before they could take action. Normally speaking though, once a charge off has occured, the chances are slim that a 2nd party would buy those rights due to high risk/low chance of recovery of assets and/or cash as the original creditor has probably already tried applying the max legal pressure (hiring a collection agency) to collect the debt.

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โˆ™ 2011-09-14 09:48:39
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Q: When the original creditor on a second mortgage charges off the loan as bad debt can a collection agency foreclose on the mortgage?
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Related questions

Can a collection agency sue you?

If a collection agency has either purchased the debt from the original creditor, or obtained an assignment of it from the original creditor (to collect on its behalf), generally, it can sue for collection.


If your first original mortgage is current can a second mortgage foreclose?

Yes. Any lien holder can initiate foreclosure proceedings when their lien is in default.


Do you need to include account numbers for both the collection agency and the original creditor on your bankruptcy form?

Include the original account number if you are including the original creditor. Include the account number for the collection agency if you do not have the orignal creditor information and are including them as "Care Of" for service.


Do you still need to pay a company if you are paying a collection agency for the charged off debt?

No, as they are the legal agent of the original Creditor and the arrangements made with the collection agency are binding on the original Creditor.


How can you find out if the collection lawyer represent the original creditor or not?

by calling on his/her phone.


What is does it mean for an original creditor to recall their collection?

Recall of a debt by a creditor is when the original creditor asks for the debt to be returned to them after they have sold it, often to a collection agency. This may occur if the debt has not been collected for a certain amount of time, and the debt will be sold to another agency to collect, or if the debtor offers the original creditor a settlement.


How do collection agencies get addresses?

Collection agencies have a couple of ways to get your address. They can either get your original address from the original creditor or by skip tracing.


Can a junk debt collection lawyer sue using original creditor as plaintiff?

no


Can the original creditor charge the debtor for the collection agency fee?

The original creditor can charge the debtor for all fees associated with collection as well as interest. Credit card companies will usually negotiate with you for lowered debt.


Can you pay an original creditor after the debt is sold to a collector?

No, the collection agency is now the rightful owner of the debt in question and the original creditor has removed the account from their books.


What is a first party Collection agency?

That's the original creditor's "in house" collection department. They are NOT subject to the FDCPA as are 3rd party collection agencys.


What is OSI collection services inc?

OSI Collection Service is a "Third Party" Collection agency. Collection agencies buy your information from the original creditor in order to collect on a debt. What this means is that they make money if you pay anything on this debt, not only from the original creditor, but a commission on the payment that you make on that debt.

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