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I purchased a condo in chicago, IL three years ago and the building has gone to pot since. 5 out of the 13 units are live in owners and 8 units are not living in them but renting them out or vacant. The owners of these 8 units went into foreclosure and there is no maintaince being kept up on the building.The insurance on the building has expired the owner of some of the 8 units was paying it. I keep my insurance up on my unit. Every month something is going wrong that needs fixing and the tenants and the 5 owners are left to collect money to get things fixed. I talked to my mortgage company about the problems we are having and they said just keep paying your mortgage and hope things get better. There is no assessment fees being collected because the association was never turned over to the owners that live there. My unit is worth less then what is owed on my mortgage and I do not see the banks doing anything to the units that are in foreclosure. Will my mortgage company, national city try and garnish my wages if I walk away? what will happen?

2 Thoughts on will my mortgage company garnish my wages if i walk away from it?
  1. Reply
    July 31, 2013 at 6:53 am

    i doubt it
    you can walk away
    and if they come after you
    file for bankruptcy
    since your credit is ruined anyways

  2. Reply
    July 31, 2013 at 7:21 am

    For a mortgage company to garnish your wages they will first have to get a deficiency judgment against you.

    What that means is lets say you owe 100K on your loan and walk away. They foreclose and sell it at action for 70K. They lost 30K so they can get a deficiency judgment against you for 30K. With that judgment they could do anything a judgment allows them to do, Garnish your wages, Take money out of your bank etc.

    The good news all states are different. Be happy you don’t live in Utah or thats exactly what they would do. IL appears to be the exact opposite, meaning they cant come after you for any loss they have. Here is a court ruling that basically says if a lender doesnt want to lose money in IL dont lend unless you can cover it.

    It appears they cannot get a judgment against you because of a loss from deficiency. Im not a lawyer so get more advice but this is what I found.

    Good luck.

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