Recommendation for collection firms/attorneys for wiped out 2nd

Investor · Jefferson City, MO · Member since 2013 · 309 posts · 100 votes

I have several second liens that were wiped out when the first foreclosed. I would like to find an attorney or a collection firm that can assist me with getting a judgement against the borrower(s). I realize that this may me a long shot but I would like to try. Who knows, might get lucky and 10 years from now I might get a little paycheck. I am not sure of the statute of limitations and I am sure it varies from state to state. If anyone has had success in collecting after they got a judgement against a defaulted borrower I would love to hear the outcome and I would love some recommendations of firms that I could turn to to handle this.

Thanks for the help!

Sandy

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Steve HodgdonPro Member

Investor · Novato, CA · Member since 2015 · 432 posts · 321 votes

Sandy - I've collected hundreds of judgments over decades in the collection agency business.

Depends on terms of the note and mortgage. Recourse or no recourse? Old? Then defense of indifference might apply. Deficiency rules vary state by state. TrakAmerica has a national network of attorneys. They might be a resource. Most bigger shops don't take one off clients. Gerner & Kearns covers a lot of states.

If you go this route, a tip is to file liens in neighboring counties or where mom and dad live. Sometimes debtors inherit property and often buy near where they lost their home.

This kind of paper used to trade for 5 cents back when I was in the debt buying space. Tells you likelihood of recovery. But if you know something about the debtor that leads you to believe he has the ability to pay...

@Andy Mirza @Sandy Uhlmann

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
7y
@Sandy Uhlmann What states? What I have found when speaking to attorneys on 1st position notes and getting a deficiency judgement is it can cost $1,000 - $3,000 to get the judgement, and unless they have other properties as collateral your chances of seeing that $ is slim to none and slim left town or you hope slim hits Powerball or megamillions.
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Derek Kirkwood
Palmdale, CA · Member since 2017 · 83 posts · 39 votes
7y
At least in some states the deficiency judgement attaches to any properties they buy in the future. This would be the only reason I would go after one. But even then I think they can be wiped in a bankruptcy. If anyone has experience with deficiency judgements I'd love to hear about it. I've been wanting to learn more about this, I think its a great topic.
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Andy Mirza
Lender · Ladera Ranch, CA · Member since 2014 · 1k+ posts · 1k+ votes
7y
@Steve Hodgdon Do you know the answer to @Sandy Uhlmann's questions?
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Steve HodgdonPro Member
Investor · Novato, CA · Member since 2015 · 432 posts · 321 votes
7y
Sandy - I've collected hundreds of judgments over decades in the collection agency business.
Depends on terms of the note and mortgage. Recourse or no recourse? Old? Then defense of indifference might apply. Deficiency rules vary state by state. TrakAmerica has a national network of attorneys. They might be a resource. Most bigger shops don't take one off clients. Gerner & Kearns covers a lot of states.
If you go this route, a tip is to file liens in neighboring counties or where mom and dad live. Sometimes debtors inherit property and often buy near where they lost their home.
This kind of paper used to trade for 5 cents back when I was in the debt buying space. Tells you likelihood of recovery. But if you know something about the debtor that leads you to believe he has the ability to pay...
@Andy Mirza @Sandy Uhlmann
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