Since mortgages are the most secured of any loan type (a lender can foreclose on a house if the loan defaults), collection agencies generally don’t get much mortgage collection work. But there is one large exception: deficiency balances. If a lender approves the sale of a house for less than what is owed by the borrower, the difference is a deficiency balance. In the ongoing morass of the housing market, short sales are commonplace. Lenders will typically forgive deficiency balances. If they do not, that amount enters the ARM process and can find its way to debt collectors.
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CFPB Bites of the Month - May 2024 - CFPB: Light My Way, Virginia May
5 June 2024
CFPB Publishes Consumer Response Annual Report
18 April 2024
CFPB Reports Credit Applications Have Recovered to Pre-Pandemic Levels; Releases Tool to Help Renters And Landlords
2 August 2021
8th Cir. Confirms Various Loss Mit and Foreclosure Communications Not Subject to FDCPA
22 July 2021
California DFPI Commissioner Alvarez Issues Strong Reminder to Debt Collectors
19 April 2021
CFPB's Latest Report Focuses on Actual Payment Information in Credit Reports
2 December 2020
Nevada Confirms that its Work from Home Provisions Have Expired
24 August 2020
2nd Cir. Confirms No Private Right of Action for FCRA ‘Direct Dispute’
19 August 2020
Several States Update COVID-19 Regulations and Emergency Orders (NY, MD, OR, NJ, WA)
20 April 2020
Lively Debt Collection Debate Likely in House Fin. Servs. Committee Hearing Tomorrow
25 September 2019
11th Cir. Rules in Favor of Mortgage Servicer in FCRA Putative Class Action Related to Reasonable Investigations
4 June 2019
U.S. Supreme Court Holds that Law Firms Performing Nonjudicial Foreclosures are Not Debt Collectors
20 March 2019
Three Lessons for Debt Collectors from the CFPB’s Latest Supervisory Highlights: Amount Owed Accuracy, Disclosures, And Payment Dates
13 March 2019
CFPB Publishes its Fall 2018 Semi-Annual Report: Credit Invisibility, Mortgage Shopping, Consumer Complaints, and a Laundry List of Enforcement Actions
27 February 2019
Sixth Circuit: “Cease” Requirement Includes Third Party Activities Put Into Action by Debt Collector
14 January 2019
Supreme Court Split in Unexpected Ways During Oral Arguments for Obduskey v. McCarthy & Holthus LLP
10 January 2019
BCFP Files Amicus Brief in U.S. Supreme Court Case, Concludes Law Firm Did Not Engage in Debt Collection by Initiating Nonjudicial Foreclosure
19 November 2018
TransUnion Report Reveals Current Consumer Credit Trends, Including 20.3 Million More Accounts
5 March 2018
Could CFPB’s Data Sharing Principles Make Debt Collection Better Too?
19 October 2017
TransUnion Finds Struggling Consumers Pay Off Unsecured Personal Loans First
17 May 2017