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Yes..they can come after you. they have to file for a deficiency judgement against you though first...which is totally separate from the actual foreclosure process. This means they have to serve you papers. Make yourself "hidden" and protect your assets. Form a revocable living trust and put your bank account and all other assets under it. As long as they cannot "find" you, they cannot "go after you".
It used to be that lenders rarely went after deficiency judgements and just wrote off the loss...because it cost too much to pursue one and they got little back in return. I mean sheez..if you can't afford a home, how can you afford to pay the difference it what you owe vs. what the house sold for in auction? BUT....that news is old from what I have heard. And that tidbit of info was true in 2002-2006 when prices were INCREASING and the big real estate boom was occuring. People that bought houses back then, even if they foreclosed a few months later, the banks were still able to recoup their loss and it was a wash....the person that foreclosed walked away with bad credit, but that was it...his/her loan was taken care of because of the great market we had. Now, however, things have changed.....now, we are in a serious declining market which means that lenders probably have no choice but to file defiiency judgements since they need to recoup their losses.
I have been studying this entire foreclosure thing for the past 7-8 months now and it finally makes sense to me now about the whole defiency judgment thing. Everywhere I searched on the internet (and I did exhausting research might I add), most people..including attorney's and real estate brokers....said that defiency judgments were indeed rare and they rarely ever saw them happen. Again, as stated before, this is because these past experiences were in a stellar market where prices were appreciating thousands of dollars every week ! Of course when the bank foreclosed on the property, they didn't face much adversity in getting what they were owed. Again...the tables have turned and now their wallets are bleeding bright red. This bright red blood is churning the waters and getting all the money hungry collections agencies hungry...with powerful attorneys ready to go after everyone...including Joe Schmoe who makes 40K a year and only had one house and no other assets. Garnishment included !
Again, HIDE yourself.....in a living trust. But you need to remember to do it BEFORE things happen, BEFORE you foreclose. If you try to form a trust after the fact, it is considered fraud and you could be legally in big trouble.
By the way....foreclosure filings here in Dade, Broward and Palm Beach Counties have about a 8 month wait list. This means you will not get a notice in the mail...or a "lis pendens", until 8-9 months after you stop paying. This also means that you can live in your home payment free for about a full year to a year and half until you get evicted. If you are in this situation...start saving...you have plenty of time to save and prepare for the future as far as rent deposits go.
Folks...we are in for a very bumpy ride. Prices will continue to plummet in California, Nevada and South Florida. We will not hit bottom until summer of 2009. Hang on....it's gonna be a wild one.
1.) I'm not married and I have 2 little girls and I am worried that my bank accounts and/or wages are going to be garnished. Can they do that in the State of Florida?
"The amount of wages which may be garnished is limited under Section 222.11 of the Florida Statutes. If all of the disposable earnings of the judgment debtor, who is the head of family, is less than or equal to $500 a week, the entire amount is exempt from attachment or garnishment."
NY has luck.. a loto f short sales going on here adn i'm one of them. My mortgage company is allowig it.
Seems stupid for them, no matter what state, to let a house go into foreclosure. For one, you can get more for hte house when it is occuppied by the owner.. it shows better, two.. people automatically offer below bottom prices on foreclosures.. they take longer to sell AND the bank has to pay taxesw while maintaining the property
Any bank in any state that doesn't allow someone that wants to get out as best they can and do the best they can for both the bank and themselvces.. and the bank doesn't allow a short sale.. the bank is cutitng off their nose to spite their face.. and it's quite sad.
I have absolutely NO respect for banks anymore.. they are greedy disgusting money hungry pigs.
For example.. while i"m having mortgage woes, all my other credit cards are paid on time.. AND I ALWAYS pay more than the minimum balance.. THere might have been a few times here or there that I wnt passed the due date not becasue I coudln't pay, but because it's hard to juggle so may different due dates on so many different bills. Anyway.. they charge you the late fee for that anyway (which is a ridiculoulsly hight amount). But the credit card company has now taken it upon itself.. because of my damaged credit score due to preforeclosure to RAISE MY interest rates to .. well almost illegal and shark loan amonts (nearly 29%). When they have ALWAYS been paid and more than minimu.m... again.. disgusting greedy SOB's..
Be careful making your minimum payments on time, if you are past your due date by ONE day your bank can report you 30 days past due to the three major credit reporting agencies and cause further damage to your credit scores.
Also, I hate to mention this to you but the user agreement would have indicated that they have the right to raise your APR with no notice.
If you read the fine print of the user agreement it will be mentioned there. The fees, interest rates and annual fees are how they make their money with people like you that are called revolvers (people who carry a balance and make payments each month) Transactors are people that pay the balance in full each month (they make no money except from the merchant fees on these types of customers)
You should set up automatic payments so you don't miss your due dates again and get charged anymore past due fees. Often if you are 60 days past due your APR will get automatically re-priced.
Also, I would call your bank (only if you are current and up to date) and request for them to lower your APR.
I work in this industry as a call center trainer and banks do this all of the time.
Best of luck, I hope everything works out for you. I remember you from before.
They cant come after your fiance if he didnt sign on the actual note.
They can come after you if there is a deficiency on what you owe and what they sell it for. You would then file for bankruptcy to erase that.
Florida homeowners can now get free legal advice from a lawyer that will help you negotiate with the lender. Call 1-866-607-2187
Back in September 2008, I surrendered my property to the bank, however, today i was served with a lawsuit from the bank. Is this right? What can i do? Can i still open a living trust account? All i have is a checking account where my payroll get deposited every two weeks. When the bank files for the defficiency, can the bank serve me at my job? Im in Florida.
If you are worried about your lender getting a deficiency judgment, then the best thing to do is contact an attorney to discuss asset protection strategy with the help of Land Trusts, Personal Property Trusts, etc. This will at least help you make it tough for your creditor to relieve you of your property, making them think twice about filing for a deficiency judgment.
The good news is that the bank cannot touch your IRA, 401(k), 403(b) and other retirement funds. On the other hand, if you used these to buy another property or asset, the bank can claim these funds. The reason for this is although creditors cannot claim retirement accounts, they can claim investment assets without special designation.
Thus, the best thing to do is talk to your lender about a short sale rather than going in for a foreclosure. If he agrees, you can prevent a deficiency judgment.
Another advantage with a short sale is that it can improve your credit, as it will feature as a ’settled debt’. Of course, it all depends on what your lender agrees to, so talk to him about it to establish how it will figure on your credit report and preferably get it in writing.
A short sale means the loss of your home. You can refer to online resources like StopForeclosureBlog.net for solutions to help you keep your home as well as for valuable resources like articles, videos and guides that will help you prevent foreclosure.
A majority of mortgage companies prefer not to file a deficiency judgment against you for good reason. They are aware that a foreclosure does not spare you any funds to pay the deficiency judgment and court fees and therefore, it would be futile for them to waste their time, money and efforts over this.
SORRY . Althou that sounds good try and find a Bank that will do a short sale ! . No such luck in Az. Calif. or Nev. Have people trying in all 3 states. Any one having real luck in any other states??? let me know.
We just did a short sale in Florida. Our lender was Wachovia, and it was a traditional mortgage. If you are interested in this option, try to find a real estate agent with experience in short sales.
SORRY . Althou that sounds good try and find a Bank that will do a short sale ! . No such luck in Az. Calif. or Nev. Have people trying in all 3 states. Any one having real luck in any other states??? let me know.
We are doing Short Sales a LOT here in Arizona.
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