Why is lender including only 1st mortgage in foreclosure?
First of all the foreclosure by Bank of America on my house is 100% illegal but that’s a whole different issue. I had 2 loans on my house, the second is not a heloc, it is a fixed second I took out the same time as the first towards the purchase of the house. I am getting phone calls from the lenders collections department asking me to pay the second. They literally call 3 times a day, I finally told the lady the 2nd is not a heloc as she was referring to it as, and that the house is in foreclosure with an auction date in a few weeks. She had no idea it was in foreclosure which is weird, but why are they not including the 2nd in the foreclosure? They’re not haggling me about the first. This is in CA.
I had put 10% down so it was a 80% 1st, 10% 2nd and 10% cash down on the purchase. The house is worth a little bit more than the 1st mortgage but I’m not selling because like I said it’s illegal they put me in foreclosure and when I collect enough money will hire a lawyer. In California only cashout 2nds they can come after, not 2nds that are fixed like the 1st that were taken out at the same time as the first during the purchase. I don’t understand why a big bank like B of A doesn’t know this and are hounding me on the 2nd.