This seems weird...

[Tartbird]

Hi all,

I got a collection letter from ACORN or something like that , and it is for our home loan??? Why would a BofA send the home loan to a collection agency? They are in the process of foreclosing on us as we speak. A collection agency seems like a moot point....

[jwmc1]

Probably sold the debt...

[Tartbird]

But, they are foreclosing and there is a second on the house(unsecured but there)

[jwmc1]

Doesn't matter...they can sell the debt at any time...they might have figured how much they would get on the forclosure and agreed to sell the debt on a discounted basis. Once a bank starts to foreclose it will write the loan down to 90% of its current market value. The rest is written off and often sold in pools to JDB.

[Tartbird]

So, do they still auction it??

[jwmc1]

They still sell it, in Michigan they usually don't auction it, just list it with a broker...don't know what they will do in your area. Bottom line is that the bank doesn't want to screw with the debt after foreclosure, so they usually just sell the deficiency off.

[Tartbird]

What also seems weird is the collection agency is asking for the original amount we paid to buy the house, not some reduced amount??

Could they be trying to drive me crazy....it is working....

[jwmc1]

Who knows, maybe they sent it there by mistake, call them and tell them that the house is in foreclosure and you don't owe them anything.

[Tartbird]

Oh, the company is ENCORE, not Acorn.... sorry.