Specialized Loan Servicing Took advantage of my financial well being Salt Lake City Utah

So you got a 2nd Mortgage that you defaulted on, you admit that the amount is your responsibility. Yet when it actually comes time to when you find out you actually have to pay for it, all of the sudden they are holding your mortgage ransom. Well at least you are original.

You are right "things happen" and when "things" like you failing to pay your 2nd Mortgage happen, "things" like them actually wanting their money also happens often at a very inconienient time for you.

The ONLY benefit of the doubt I would give you is that you actually were clueless. That is either you didn't REALLY want to know what the Charge-Off meant or you just didn't understand what you were told. So let me help you out.

A "Charge Off" does NOT obsolve you of the debt. A "Charge Off" next to an actual Foreclosure, Repo or Bankruptcy is about the worst thing that can show up on your credit. As it basically is the lender telling the world that you were delinquent and they actually don't see you being able(or willing) to pay the debt. SO they are doing what is nothing more than an accounting process to remove it from their books.

Now, when they charge it off, the debt is still transfered/sold to another company. In this case SPS. You are still subject to the original terms and balance. The only difference now is it is just to another company. Yes, you  agreed to this when you got the loan.

If they have a lien, it is up to the company as to how they want to collect it. The mortgage is secured by your house and they know they will eventually get their money. So unless you are proactive, there is really no incentive for them to try and track you down. Yes, even if that tracking you down was to give you a call or send you a letter.

Finally, generally just like the first mortgage, the 2nd would be "paid" from the proceeds of the house. So now if there are not enough proceeds to cover the 2nd the lien holder (SPS) is under no obligation to release it.   You MAY get them to accept a "Short sale" but with a 1st and 2nd, it becomes a lot harder to get all your banks to agree. If they do...great. If they don't..not a RipOff.