Lately I have been receiving more phone calls (more than usual) from potential clients who are being sued or pursued by 2nd Mortgage Lenders many years after their homes have been foreclosed.  They are quite surprised that the foreclosure did not "take care of all liability."  California's antideficiency laws protect against liability for purchase money 2nd mortgages.  Despite the protection, that has not stopped debt buyers from pursuing collection efforts.  The Creditors and debt buyers who have purchased these pools of foreclosed mortgages shoot first ask questions later.  I've seen them all "You are liable. Please pay."  Often times I am able to present the antideficiency defense or other defenses to get them to stop collection efforts. However, a fellow NACBA attorney (Thanks Ray Shimmel) posted this article where a Texas firm sues homeowners with foreclosed 2nd mortgages using a defense to the antideficiency defense (fraud).  See the article here:
I am left wondering if other debt buyers are taking notice and begin taking their shoot first ask questions later attitude to the courts?


Leave a Reply