will the lender go after your bank accounts in foreclosure?

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Icon Mini Profile photon71





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Post Posted: Mon Nov 17, 2008 11:36 pm    Post subject: will the lender go after your bank accounts in foreclosure?
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It seems my last resort is go into foreclosure. I have liquid assets in the bank, another property. Will the lender go after my assets?
Icon Mini Profile jameshogg
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Post Posted: Tue Nov 18, 2008 12:35 am    Post subject:
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Hi photon!

If your property is foreclosed, the lender will try to recover the debts by selling it. But, if there is a deficient amount, the lender may ask you to pay it off by filing a deficiency judgment against you. If you cannot pay, he may place lien on your other property or can even garnish your wages. As far as I know, bank accounts are not even exempt from the liens. Normally retirement accounts are exempt from this.

It will be best if you can speak to an attorney and check which assets are susceptible to a deficiency judgment laws.

You have mentioned that your last resort is foreclosure. Did you try the different methods to avoid foreclosure?

Thanks
Icon Mini Profile gmakerley
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Post Posted: Tue Nov 18, 2008 12:08 pm    Post subject:
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garnishment of wages and attachments to savings accounts are probably the last things on any lender's corporate mind when it comes to foreclosures.

i am quite certain that your assets and your paychecks are safe.

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RonY

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Post Posted: Sun Mar 15, 2009 3:08 pm    Post subject: are my bank accounts protected @foreclosure ?
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I live in the weird State of SC ....am not sure my wages and assets are out of their reach....? Sad
Icon Mini Profile jameshogg
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Post Posted: Sun Mar 15, 2009 8:40 pm    Post subject:
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Hi RonY,

As far as I know, garnishment of wages and assets are not allowed in South Carolina. However, garnishment of savings account will depend upon your state laws. You can consult an attorney and take his opinion regarding this issue.

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DLO

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Post Posted: Tue Jun 16, 2009 2:25 pm    Post subject: Possible Foreclosure and Liquid Assets in another bank
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I live in California and may be facing foreclosure due to a lay off. Can the lender go after my savings, checking and CDs from another institution? If so, how can I prevent this?
Icon Mini Profile gmakerley
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Post Posted: Tue Jun 16, 2009 2:40 pm    Post subject:
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not to worry.
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Post Posted: Sat Aug 22, 2009 7:53 pm    Post subject:
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Our rental house got foreclosed early part of this year , currently due to job loss , we already missed a month mortgage on our second house, we are planning to surrender the property to the lender, will the lender go after our savings and other assets? How bad will this affect our credit score, having one house being foreclosed and another one is on the process of shortselling ?
jj

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Post Posted: Mon Jan 11, 2010 2:07 pm    Post subject: going after assets
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I own a condo in SC. It's a second home. Big Banks have reclassified the property as Sub Prime, so now only cash buyers can buy there. This has crushed the value of the condo. I put about $80k down and now it's about $60k underwater. If I stop making payments, how likely is it they will go after me? I live in MI.
Icon Mini Profile jenkin7
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Post Posted: Tue Jan 12, 2010 12:55 am    Post subject:
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Hi jj,

If you stop making the payments on your loan, your current lender will foreclose your property to satisfy the mortgage lien. Since the property is underwater, there will be a deficiency from the foreclosure sale of the house. The lender will have the right to come after you for the deficiency. If you fail to pay off the deficiency, they may seek a deficiency judgment against you. If they forgive the deficiency, you will not have to pay it off. However, in that case you will be liable to pay tax on the cancelled debt. But you can claim exemption from taxes under the Mortgage Forgiveness Debt Relief Act 2007, which applies to debts discharged in the years 2007 through 2012.

Hi Guest,

Quote:
we are planning to surrender the property to the lender, will the lender go after our savings and other assets?

Are you going to surrender the property to the lender through a deed in lieu? In that case, the difference between your mortgage balance and the property sale price will be forgiven. The lender will not come after you for this deficiency. However, this will affect your credit scores negatively and you will not be able to qualify for a new loan for at least the next 2 years after the deed in lieu. If another of your house is going to be short sold, you will be liable for the deficiency and your credit scores will also get affected adversely.
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Post Posted: Tue Jan 12, 2010 9:13 am    Post subject:
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Better you approach your mortgage lender for DIL / Short Sale. at the same time you need to think about your another home as well. is it mortgage free ? or you can make monthly payments as usual.
cin

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Post Posted: Wed Jan 20, 2010 5:04 pm    Post subject: two homes
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My husband brought a vacation home last year, I owned my house before we got marry. Can't afford two houses, can I short sale my house or foreclose. My name is on his title to his house. What would happen to his place .......would the bank put a lien on it.....thanks
Icon Mini Profile jenkin7
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Post Posted: Wed Jan 20, 2010 11:29 pm    Post subject:
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Hi cin,

If your lender pursues a judicial foreclosure on your property, he can obtain a deficiency judgment against you. The judgment will allow the lender to garnish your wages or to put liens on your other properties. Since your name is on the title to your husband's house, the lender may put lien on it. However, the lenders generally use this option as their last resort. I think you should try out the option of deed in lieu of foreclosure. Chances are that the deficiency, if any, will be forgiven by the lender.
estrella

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Post Posted: Mon Mar 08, 2010 2:54 pm    Post subject:
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To prevent a foreclosure you must consider a shortsale
* You are in control of the sale, not the bank.
* You may sleep better at night knowing who is buying your home.
* You will spare yourself the social stigma of the "F" word, foreclosure.
* Contrary to popular belief, you can be current on your payments and still effect a short sale.
* Your home sale will be handled like any other home sale.

You are out of the debt and then you can rent for a while while you repair your credit and buy another home. During your shortsale you will have time to save money and look for a new place to live in peace. Instead of being rushed to move and instead of hindering your credit. There is always a way out.
gigi

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Post Posted: Sat Apr 24, 2010 5:03 pm    Post subject: short sale
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this is for george a. I live in california so, you are saying if I short sale a house, they will not go after my bank accounts? Is it ok stop paying the mortgage if I plan to short sale, how to I answer the bank once they start callling me for late payment or i mean non payment
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