2nd mortgage sent to collections

[monidel]

I was successful (twice) with CW in getting loan modifications for my 1st mortgage. However, I tried to get one through EMC (2nd) and although I sent all the required paperwork, I never received anything back. When I tried calling them, I was told that my paperwork was in the hands of a counselor and that I would be receiving a call. No call. At other times I was told that they had no information.

Now, I receive a letter from a collection agency stating that they are trying to collect a debt for EMC Mortgage. My questions is, can they do that? Do I need to contact them?

I am looking into filing for BK to try and deal with the second. I would appreciate any help.

[HopingtoFind]

Which state are you in? In some states you could be protected if your 2nd was a purchase money loan.

[monidel]

I'm in CA and yes it was used as purchase money

[HopingtoFind]

If you have a purchase money loan in CA lender has no recourse against you other then to foreclose. I would contact an attorney to make sure that that is the case... and if so send them a letter to cease collection efforts.

[HopingtoFind]

Are you planning on keeping the house, because the only way the 2nd would be wiped out is if the first forecloses. Maybe you can settle with them if you're actually planning to keep your house.