You are here:

Collections Law/HUD is garnishing my wages

Advertisement

Expert: Michael Brotherton - 7/19/2007


Question
I work for the federal government and noticed that this last paycheck had money missing. I started researching because I had no clue why. Turns out, HUD has sent our Financial Management Servicing Agency (FMS) an order to garnish my wages. HUD will not return my phone calls to answer my questions.
I suspect this is because of the "Short Sale" I did at the urging of Chase (my home lender) and HUD. At closing, I received a HUD-1 Form saying I owed nothing. Then, I got a letter from HUD and did some research but couldn't find where I owed money, and I relayed that to the HUD office that sent the letter. I haven't heard from HUD since. I thought the problem was solved. Now, out of the blue, HUD has started taking my money.
This has put me into a hardship position. I was barely making ends meet and now I don't even bring home enough money to pay the rent. This is my only income.
I live in Texas and I need to know what to do next. Please help! I'm desperate.
//rbnew

Answer
Write a letter to HUD advising them you were informed this was a settled debt. Send any documents you have to verify this. Send the letter by certified mail, return receipt requested.

Unless you can substantiate your settle I am afraid they have a right to be repaid.However, you should be able to work oout a mutual arrangemnt to pay a lesser amount or pay a lump sum to settle the debt.

Collections Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

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.

©2012 About.com, a part of The New York Times Company. All rights reserved.