Insurance company paid our 2nd mortgage... now what?

[hopeforus]

Will this change the way we have to handle things or will the Insurance company now just be the ones coming after us instead of USAA? Just got a letter today saying the loan was assigned to United Guaranty and the claim was paid since we failed to comply with the terms of our loan agreement. Of course they are asking for the 40.5k and have 30dys to reply if we dipute or to request the name of the original creditor.

Is this the same as if this was from a collection agency just like my credit cards and creditor's interchange etc?

Thanks

[frankies_mom]

Us too

We are in the exact same boat and bought by the same insurance company. Filed Ch 7 two years ago and did not reaffirm 1st or 2nd but we are still in our house and current on our 1st and would like to stay in it.

Within 2 weeks this company sent our loan over to DCS collections. I had the pleasure of talking to them yesterday and they came up with 4 wonderfully impossible settlement options. We were in the middle of a loan mod with CITI for the 2nd when this happened. So glad they got all of our tax dollars!

If anyone has any info on the best course of action for both of us, please help!

[hopeforus]

What's confusing to us now is... I assume there is still a lien on the house? But they paid the mortgage. So do they have to attach a lien to the house? I don't get it. Cause isn't it just unsecured now and goes bye bye with our bk? We don't owe the mortgage company anymore... so now I'm all confused lol

[walkthaplank]

My reading of what you posted is that the holder of your 2nd sold the debt to the other company so they could attempt to collect from you. The lien will transfer to the new company and they will probably hound you until you do something with it. If the value of your home is less than your 1st mortgage, you could strip the 2nd in a CH13 bk.

Expect the new company to be much more aggressive in pursuing this.

[OregonMom]

We got the exact same letter today in the mail from the same place dealing with our second mortgage. We gave up the house in the bankruptcy and I told them to call our lawyer about it.