Can a lenders insurer foreclose on a home?

Question

My lender turned my 2nd mortage over to their insurance company, which paid my lender the balance of my 2nd. I have worked out a deal with my lender on my 1st. Can their insuance come after me for the balance and threaten me to foreclose on my property? Can they garnish my wages?

Answer 1

Most of the major insurance companies are not in the business of financing insured's homes.  So this sounds a bit obscure.  However, any mortgage company/holder can foreclose on your property if you do not make payments.  

Garnishing wages is a unlikely scenario since the mortgage company would foreclose on the home and then sell it.  They would have to sue you to garnish your wages.