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Question
Michael, I bought a house about two years ago. The appraisers were in bed with the mortgage company and I got took bad. They sold me the house for 205000. I just had it appraised myself (two years later) and it only appraised for 185000. I currently have tenants in the house and I am paying 650 a month for them to live there. I cant refinance, cant sell it so I have considered foreclosure. My question is 1)Do you have any suggestions and 2) If i foreclose and there is a balance on the property, can my wages be garnished. Thank you in advance for you answer...
I would ask the lender to take a deed in lieu of foreclosure and relinquish you from any obligation on to the debt. There is a process to this which needs to be followed and you must be able to demonstrate a hardship but it would be a good way of handling this situation.
To answer your other question- yes, they probably could collect their deficiency via wage garnishment but it depends on your state. Most will not attempt to collect a deficiency but they do have the right. Deed in lieu would eliminate that problem.
If you need help call my office at 877 270 8204.
Good luck,
Mike
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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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