Can banks seize your other assets if you default on your mortgage?

Question

I know banks can foreclose on the house and sell it, but can they legally garnish my wages, take my savings, etc. or are they only limited to taking away the house? Will I still be liable for the remaining balance on the mortgage? I'm not talking bankruptcy. Does the bank taking my house clear my debt with them since they will pocket the proceeds from the sale? Isn't that a risk banks assume when lending?

Answer 1

The collateral the lender signed for is the property they will go after.

There is a thing called deficiency judgment. Personally I have heard of one time where they went after someone for that and that was because the house burnt to the ground.

Once the foreclosure procedures have taken place and is complete, that is normally all there is.

Very seldom will they come after you or garnish your wages, these are scare tactics that have been used in the pass.

When you signed your loan docs the only thing you offered as collateral was the property you were purchasing or refinancing. Your car, a second house or job was not offered as collateral on the loan docs.

If the bank/lender is unable to get the desired funds from the foreclosure auction, the bank retains possession of the property.

The bank hires a real estate agent to get the maximum out of the property they can to include any foreclosure fees they charged for trying to collect and the requirements to do the foreclosure in your state.

Your debt to the bank is not longer there once they have completed the foreclosure procedure. That is the collateral that they signed for when they gave you the loan.

They will annotate your credit report with a foreclosure and the amount of the foreclosure might even be there.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

Yes, you still are liable for the remaining balance on the home after the sale of the house. Yes, just like any other creditor, they can garnish your wages and no they do not assume they will have to foot your bill when you can no longer handle it. Try a short sale or offer your property for sale for the amount you owe. You will only get the satisfaction of being out of debt, but I'm sure that will leave you somewhat stress free.

Answer 3

One of two things will happen, they will either come after you for the difference between what it was sold for, plus the fees, penalties, and costs associated with selling it, or they will write it off and send you a 1099 which is an income statement, which you will owe state, local and federal taxes,,social security etc most likely bonus rate of 30-36%.. The assumption of risk is tied to your interest rate, but in the end you will be held responsible one way or another.

Answer 4

It depends on your agreement with them. In many states the mortgage company comes back against you for any deficiency after they sell your home at the court house steps.

In Texas they can not garnish wages for this but in many states they may be able to.

Answer 5

i like your query, that's an engaging concept. yet i do no longer think of that the banks conspired the housing growth, they did bounce on it and have been given solid organization out of it yet now they're suffering to boot. Banks do no longer prefer to very own homes, that may not their organization. despite if i in my opinion think of that housing growth and housing hunch is rather brought about by the Media. the actual aspects marketplace is gentle and relies upon on purchasers and traders self assurance merely till now the massive housing growth all Media have been reporting how super investment in actual aspects is and how lots funds could be made. the customer's self assurance interior the marketplace grew to become into intense. the comparable Media are reporting now approximately how undesirable the housing marketplace is and customer's self assurance is low, that reasons human beings attempting to get out of their actual aspects investment, that reasons the fees to drop, that reasons financial enterprise foreclosure etc. query is, who's at the back of the Media? factor is, actual aspects constantly grew to become into and nevertheless is a very solid investment and safer than different different investments. actual aspects is an investment you will see, stand on, stay in, savor, retire and it is normally there regardless what the financial device is doing. actual aspects will constantly be in want. inhabitants is turning out to be and persons could desire to constantly stay someplace. by the way, the goverment can no longer very own each and every of the homes, they won't have the money for all of the valuables taxes and coverage (: (kidding)

Answer 6

if you have a checking or savings at the same bank the loan is, then some of the fine print says they can take the money from those accounts to pay the loan.

Answer 7

Can someone please give me a straight answer for the State of Illinois? After a foreclosure -Can the bank seize personal property (i.e. - bank accounts, jewelry, cars, RV)?