if you go foreclosure, can they take my social security check!!?

Answer 1

no SSI can not be garnished in any way, exception can be child support

Answer 2

Before choosing to go with the foreclosure, you should look into a few other options first. Refinancing is the option that most homeowners attempt first, but credit/income and tighter lending have precluded most homeowners from qualifying for a loan right now.

Either way, you should list the house on the market just on the off-chance someone wants to purchase it before the foreclosure goes through. You can also try to work with the lender for a short sale, where you'd sell the property for less than what you owe on it. At least it will pay off the loan and save your credit a bit.

If that doesn't work, ask the lender about giving a deed in lieu of foreclosure. That works as just giving the property back to the bank, and they can't go after anything else. They accept the deed instead of foreclosing or paying the loan, so there's nothing else for them to go after. This is only slightly better than a foreclosure, but anything you can do to preserve your credit will help at this point.

It will depend on how the bank pursues the foreclosure if they can sue you for another judgment and go after any other assets. With just the foreclosure, though, they are not entitled to anything else. You pledged the house as collateral for the loan -- not your car, 401(k), or prize racehorse. So all that they can take as payment for the loan is the house.

Look up California's state foreclosure laws and consult your loan documents to determine what kind of foreclosure the bank can proceed with (Judicial or Non-Judicial). That will tell you if they can sue you afterwards and try to go after any other assets.

Banks rarely sue for deficiency judgments, though, since they know that foreclosure victims don't have a lot of extra cash or even the ability to borrow any money. It costs the lender extra time to sue you and there's no guarantee they'd be able to collect on the judgment, so most don't bother with the judgment at all.

Hope that helps.

Answer 3

Depending on the type of loan you have & the state you live in will determine if a lender can seek further remedy if they don't recover their debt & associated expenses.

If you live in a state that allows a "deficiency" then they may try to sue you for the difference of what the debt was & what they recovered.

Some states do not allow a lender recover other than from the foreclosure sale of the property if the loan was used for purchase of the property (purchase money loan). There is a distinction between an original purchase loan & a refinance or Equity Line of credit. Those type of loans may allow lenders to sue for deficiency.

Answer 4

I don't believe they garnish if that is what you are asking. But they can file a 1099 form to the IRS for any balance left after selling the property. Which in effect grosses up your income.

But let me be clear, if you haven't missed a payment yet, or are not in foreclosure yet, you need to call your lender and ask for their help. HUD has also set up a counseling service to help homeowners call 888-995-HELP. Call them today, you may have other options.

Answer 5

Foreclosure does not relieve you of the debt owed. If they foreclose and sell the property, the difference between the amount the got for it and what was owed, plus legal costs, sales costs, penalty costs agreed to in the loan terms and conditions, acrued interest, etc still have to be paid to satisfy the debt.
Any assets (money, etc.) are fair game for a court to award a judgement in favour of the complaintant..i.e - they can take anything you have if the court awards it...

Answer 6

There is no deficiency judgement for a lender in California if it is a purchase money loan.

They can take nothing!

Answer 7

If my house is foreclosed in new jersey can they take my social security