After some further research into my post Another Bank Loophole?, I found out what the deal is with Collection Agencies buying up 2nd mortgages. It turns out that Collection Agencies can legally garnish wages if they want to pursue a debt. So I guess it would make perfect sense for these companies to buy notes at .30 on the dollar and go after the homeowners wages. Apparently this is a very lucrative business that I was not aware of. I can see how banks would rather do this over taking a lesser dollar amount at closing to settle the account. Hopefully this won’t become the norm. Remember, we are trying to help people, not draw blood from a stone.
Getting through the short sale process
