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Can the mortgage company garnish your wages for the remaining amout of the mortgage if the house does not sell for what your mortgage was for? How does a foreclosure work? We are about a month away from facing one

2 Thoughts on Can they garnish our wages during/after a foreclosure?
  1. Reply
    jandy
    January 5, 2013 at 4:57 am

    Not that I know of, and if you file bankruptcy, they can’t garnish wages is my understanding. file, gets rid of credit card debts, fairly easy to do, It mostly affects your credit report, if you have loss of income due to illness or the bank/lender isn’t willing to work with you and you were given one of those predatory loans, they’ll should atleast work with you on the value of the home assessment. The banks , realtors all know it’s better to have an occupied home than an empty one. Sorry for your circumstances. I know you put your heart/soul into your home. Have to have fixed rate loans, do not ever do a zero loan or adjustable rate mortgage unless you can pay what it adjusts to. I can’t believe they are not working with you to save home as there are programs in place to avert these foreclosures. Speak to the lender and ask if you are eligible, do it now, sooner the better. In the past, you needed a qualifying income to purchase a home. Do you have veteran’s benefits? have you tried to refinance?
    nothing goes to the principal and you have no equity and now with homes being assessed by the county tax assessors as less than the mortgages, the county gets less taxes, too. (their problem)

  2. Reply
    Reena
    January 5, 2013 at 5:07 am

    Find out whether your state follows the “one action rule”.

    CA for example has it and what it means is if the lender forecloses and sells the house they can’t come back and sue you for the difference if the sale does not bring in enough to pay off the mortgage.

    Google: Foreclosure rules in (your state). and look for the term “one action rule”.

    Here is a link to the CA Foreclosure rules:

    http://www.foreclosure.com/statelaw_CA.html

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