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Second mortgage reporting full balance after foreclosure
My property was foreclosed on several years ago. The second mortgage was called into the case as a Defendant.

On my credit report, the first mortgage is "foreclosed" with a $0 balance. The second is marked as "Collections" with the full balance, which increases every month. It's my understanding that in Illinois it would next to impossible for them to recoup anything from this debt, and the statutes say at the time of judicial sale (which occurred) all liens are considered foreclosed. I spoke with an attorney about this, and they were certain of IL law but uncertain of credit reporting rules.

Can they continue to apply interest, late fees, etc. and not report as a foreclosure?

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