When a loan is charged off

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Posted by G.O. on December 26, 2009 at 01:08:23:

The loan in question was in 2nd position, it was HELOC. Both 1st and 2nd became delinquent. The 1st is in the process of foreclosing and in the meantime the 2nd was charged off.
1) when a loan is charged off, does it automatically become an unsecured debt, just like a personal loan?

The account is now with a collection agency, which still attempts to collect. The loan is recorded (in the Registry) as discharged.
2) would a collection agency, or creditor, try to attach this debt to the property, in case it ever gets sold?

Thanks,
G.O.

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