I have an investment property in California that foreclosed. Can they garnish wages?
September 11th, 2009 by Jarad S.
Question: I have an investment property in California that foreclosed, now I have a differdent company NARS calling me regarding that line of credit that I owed the to Chase. They want me to pay the whole 53,000 in full or make payments on it. I currently live in NC. Can they lien my home in NC or garnish my wages?
Thanks,
Answer: -If they file a deficiency judgment against you, yes you’ll have to pay them and that judgment may be able to attach to other properties or yes they could garnish wages if they took it that far. Very rarely does this ever happen because it costs the banks even more money to sue for a deficiency judgment and clearly they should know you don’t have any money, so they don’t even bother. And if by some odd reason the bank did file for a deficiency judgment, most homeowner file for bankruptcy which wipes out the judgment altogether. More than likely they will 1099 you for the amount they lost and write the loan off.
It’s not uncommon either for lenders before foreclosure and after foreclosure to put fear into homeowners minds telling them they will sue them or garnish wages or take assets if they don’t pay. These are all scare tactics. It’s there job to “scare” you so you’ll pay them as much as you can, even though clearly you can’t afford any payments to them.
September 12th, 2009 at 3:53 am
Hi, well it’s their way of scaring the homeowners as they pay. Yeah it happens mostly in californian properties. This is somewhat high here. Thanks a lot. It’s nice article. If you’re writing on Santa Cruz Ca let me know.