This is what is happening now so those of you who are late on your seconds may want to pay attention. Banks (Wells Fargo) that have pools of equity lines are taking portions of them based upon delinquency and writing them off, similar to a CC charge off, before they foreclose or SS and selling the debts to collectors.
This means that you will have collectors hounding you for the rest of your life and possibly bring a judgment against you and goes as far as wage garnishment for the collection.
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MacroManic: I’m not sure what you are saying? How can a second sell a non-recourse loan to some collector who can then try to hunt you down for years? They can’t just change the terms of the loan to where they can garish wages etc, right? A purchase money second only has right to the secured asset, nothing else as I understand it by CA law.
