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Question
I'm about to go through forclosure. My guestion is can the mortgage company garnish my wages for he remaining balance of he loan that is not collected when the home is sold?I hear that they will place a lean on other properties if you have them. My only concern is my income. Can you please help me with this? Thanks Paul from florida.
In many cases they can collect deficiency balances. IN Florida they have favorable garnishment laws so they may be limited on garnishments to anything over $500 per week. However, in many cases the lender will forgive deficiency balances and send you a 1099 so that you have to pay taxes on the forgiven debt. But good news! Congress is expected to waive the reporting requirement on deficiencies and IRS rules are expected to change in favor of the debtor. Watch the news over the coming months.
That said, if you want to keep the property there are programs that can give you a fresh start but you need to be pretty aggressive to get anything done depending on your lender. If you need help call me at 877 270 8204.
Good luck
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. Mike is well versed in Loss Mitigation practices and the legal collection process. He has helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. FinancialEmergency.com is a consumer web site which actively promotes Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
Over 40 years combined experience negotiating disputes and resolving financial issues related to consumer debt, corporate issues and mortgage modifications.
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