We have 1st and 2nd purchase money loans with Chase and Citi, respectively. Have not paid either since 8/1/11. Citi (2nd) has moved our loan to a collections dept [LTD Financial Services]. From reading Tom Eason's Strategy for Settling Your 2nd info, I learned that I can ignore the collections agent and that eventually the recovery dept will contact me hoping for a "workout". Thank you for that very helpful information!
As California is a non-recourse state, why would I settle with my 2nd at all? As I understand it, after the 1st forecloses the 2nd is just out of luck. Do people settle out of a sense of obligation or is there a real benefit to settling with the 2nd that I'm missing?