Can my paycheck be garnished due to a foreclosure?
Question:
Answer:
That depends on the law of the state where the property is located.
In general if the property is located in a state where a trustee is appointed in an expedited procedure to sell the property,the bank gives up the right to go after you for their losses.
However if the bank chooses to go the route of judicial foreclosure the court may award the bank the right to collect its losses from you.
You need to check the law of the state where the property is located.
many things need to happen before, first your state must allow garnishing not all do, second after the foreclosure many banks right of the excess, if they do not then if your state allows they can if they know where you work
not in normal circumstances in RE foreclosures
yes if the company decides to go that extra mile with the courts
Well if the bank takes your property then good luck. Let's say you owe 100k and the bank resells the property for 75k, the bank will have to report the loss so the IRS will be making sure your paying taxes on that 25k that was loss because they consider that a profit for you.
I'd sell your property before your redemption period is up.
yes but it will take awhile before that will happen. A couple of things need to happen first bepending on your local laws. You might want to contact an lawyer and im sure the irs will be sending you a letter to let you know of your gain from the forecloser
If there is a deficency balance, if garnishment is allowed in your state and if they file suit to recover, yes they can.
To sum up others reponses- Yes it can be garnished, but only by a court order. The mtg company doesn't have the power to do it on their own.
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