Can a Creditor Garnish Your Wages After a Foreclosure has Gone Through?

June 8, 2010 · Posted in IRS Problems · Comments Off 

There are many questions that race through your mind when you are facing a foreclosure. One of the most common questions is why is if your mortgage lender can garnish your wages.

This cannot be answered with a yes or no as it is dependent on your state and mortgage terms. However, for the most part it is illegal for any institution (other than a few government agencies) to garnish your wages without first suing you.

That brings the question; can a mortgage company sue for the difference between the amount owed and the amount of the foreclosure sale?

Natalia Osorio Editor of the “Loan Modification Foreclosure” website — http://www.LoanModificationForeclosures.com — pointed out;

“…Again this will be dependent on the state you live and your mortgage terms. However for the most part it is an option that mortgage companies can use, although it is uncommon. Mortgage companies lose an average of $100,000 per foreclosure. Suing a client will take years and also cost doubles the amount in legal fees. Therefore lenders tend to cut their losses and do not pursue legal action…”

This is a preview of Can a Creditor Garnish Your Wages After a Foreclosure has Gone Through?. Read the full post (506 words, estimated 2:01 mins reading time)

Tags: , , , , , ,

Next Page »