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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U.S. Rep. Proposes Sweeping Changes to FCRA, Including Furnisher Mandates

10 September 2014

BofA Wins Dramatic Attorney Fee Reduction in TCPA/Debt Collection Call Class Action

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CFPB, Other Feds, and State AGs Announce $1 billion Mortgage Servicing Action

18 June 2014

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Third Party Debt Collection Accounts Jump in First Quarter

14 May 2014

Mortgage Delinquency Rate Continues to Drop; Non-Prime Borrowers Represent Bigger Share of New Loans

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