I foreclosed on a home back in 2009 here in California. Well we are wanting to buy again but my second mortgage that we took out with the same bank at time of purchase is still on my credit report as a open and delinquent account. I need this gone.
3 Answers from Attorneys
The negative information stays on your credit report for seven (7) years. You have a ways to go.
Indeed, if you had both a first and a second, and the holder of the first foreclosed on you and the holder of the second didn't get paid off in full out of the foreclosure proceeds, the second has an unsecured note which you still owe, and, until the statute of limitations runs out, could sue you for the unpaid balance, plus costs, fees and penalties.
The only way to make an upaid debt go away is to pay it. Even if they can't collect it after the statute of limitations runs out, or because it was a purchase money loan of a principal residence, or any other reason, it is still an unpaid debt for credit purposes that they can and will continue to report as long as they can. Not sure why you think you can fail to pay a debt and get to make it "go away," just because you don't want it reported now.