Question: What steps are taken by an escrow company to collect a balloon payment before they forclose?
Answer: Depends on what the language of your documents are but typically you can expect some letters seeking payment and then possibly calls from a collection agency. Keep in mind that if the the balloon payment is part of a home equity line of credit that you may have some liability even if you lose the property in foreclosure. You should consult with a lawyer to determine if you can be sued for a deficiency or not. Best of luck
January 17, 2008