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We have an 80/20 mortgage loan to this bank in LA. We might foreclose our house soon. But we have CD’s and Savings account in the same bank. Do they have the right to hold our account or worse get money from our accounts since it is the bank?

6 Thoughts on If I foreclose my house, can the bank get my money in their bank?
  1. Reply
    ~Sunshine~ Registered Nurse
    December 8, 2012 at 3:37 pm


  2. Reply
    December 8, 2012 at 3:52 pm

    You would have to read your loan documents, but generally, yes. It’s called RIGHT OF ASSIGNMENT or possibly RIGHT OF OFFSET, and it allows a lender to recover their loss by taking all of your deposits, up to the full amount you owe.

  3. Reply
    Jason M
    December 8, 2012 at 4:24 pm

    How about paying your mortgage which you agreed to do in the first place. IF you are capable, you should pay it, which if you have CD’s maybe you should cash them in to pay your mortgage.

    Are you forceclosing to afford your new Hummer? It’s not up to you to foreclose, so I’m assuming you just want to stop paying your mortgage which is why we are in this financial mess in the first place.

    Gee that would be HORRIBLE if the bank took money you OWE them out of your savings account and CD’s? You’ve got to be kidding me.

  4. Reply
    katie s
    December 8, 2012 at 4:24 pm

    Yes, they can take your money. Somewhere in the fine print of the mortgage or note or the paperwork that provides the rules for depositors, there is a little understood clause called “the cross-collateralization clause”. That means that they have the right to offset, or automatically debit your accounts to offset any past due interest or principal on any outstanding instruments.

    If you plan on giving them your house back, you will have to move your deposits at least six months prior to defaulting on the loan or they will go to court and stand a good chance at re-instating your mortgage due to your liquidity and ability to pay. courts are not lenient on a debtor that picks and chooses his default actions, when they have cash on hand.

  5. Reply
    Andrew D
    December 8, 2012 at 4:27 pm

    Don’t let them foreclose, Sell the house using and but the words in the title: “Owner will carry” and then carry back financing for what ever equity you have in the property. This is just basically taking a note for your equity and it will get your phone ringing off the hook. Everyone loves an owner will carry situation.

    And when they come over to look at the house, take the cars out of the drive way, detail clean every nook and crannie and get rid of any clutter (like teddy bears and fairy statues and weird crap like that)

    Make sure you put a professional looking sign in your yard that says FOR SALE BY OWNER, OWNER WILL CARRY FINANCING,
    (555)-555-5555 and if your house is in a low traffic area, then put street corner signs pointing to it that say the same message. Driving by is the #1 reason people buy a house, #2 is good classified or listing ads.

    And also put an ad in your local penny saver or nickel ads.

    It’s not time to call it quits yet!

    By the way, If you need to sell the “owner will carry” note that you made using owner financing, I’ll tell you how to create it so that it’s even worth buying. And I may be able to buy it from you! You can go to:

    And if your house has 1 month left before foreclosure, than call a cash house buyer in your neighborhood, they’ll liquidate you but you’ll probably loose your equity, you may save your credit though!
    They can be found on craigslist or a paper classified.

    Good luck!

  6. Reply
    December 8, 2012 at 4:34 pm

    It does not matter what bank. You seized their assets, they have the right to seize any of yours. You can not foreclose without penalty with the ability to pay off the loan.

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