Ex-Homeowners Wages Garnished for Foreclosure Deficiencies
Can your lender really clear out your bank account and garnish your wages for an old foreclosure?
Unfortunately, it is true and it is happening. Homeowners who failed to get help to negotiate their short sales or avoid a full foreclosure are now waking up to the scary, real consequences of their inaction.
In states where deficiency judgments are permitted attorneys say that mortgage lenders are completely within their rights to seize borrowers personal property and have the sheriff sell it, as well as take money from bank accounts and even have wages garnished.
So you lost your home and now you could lose your furniture, cars, savings and income too.
Can this be prevented?
Absolutely. Those facing foreclosure now can sell their homes quickly for cash even if they are just a couple weeks away from their auction date. Those who are underwater can still do short sales but must recognize how critical it is to have an experienced pro representing their interests to negotiate a fair deal with the lender. This hopefully includes the bank both waiving their right to chase a deficiency judgment and paying out relocation funds to the borrower, which can be as much as $35,000.
Doing nothing or taking the DIY route when free help is available can mean financial ruin for decades as well as completely destroying careers and family relationships.
What if I already allowed my home to be foreclosed on?
Fortunately for those who have already lost their homes to foreclosure and who could be hit with wage garnishments there are some grounds for appeal.
If this is happening to you, you have a very short window of opportunity to fight back so don’t delay.
Your current home, bank accounts, retirement savings and wages could be protected if you are the primary wage earner and have minor children.