Posted on: 31 December 2015
If you have already undergone the harrowing experience of foreclosure and simply want to move on with your life, you may be faced with an unpleasant surprise. When a house does not sell for enough money to make up for its debt, your lender may be able to seek repayment elsewhere, including by garnishing your wages. Whether or not they are allowed to do so is largely determined by your local laws, as well as the expertise of your attorney. If you are struggling with a foreclosure and worried about your long-term ability to recover, read on to learn more about your rights and options.
Learning Your State's Laws
Every state handles loans, debt and foreclosures differently. The majority of them allow mortgage lenders to pursue
Determining Your Remaining Debt
Once the bank has taken control of your house, it will be sold to cover the remaining mortgage; alternatively, you may be able to sell the house yourself for a better price. The final selling price of the house will be deducted from your mortgage loan. If it sells for more than the loan, you are off the hook and may even be owed some money. Otherwise, you may be held responsible for the remaining value of the loan.
Defending Your Assets and Wages
In some cases, wage garnishment may be the easiest way to pay off a loan, but it can also cripple your ability to find new housing and get back on your feet. Your state may not directly ban the pursuit of
Finding Alternative Debt Settlement Options
Wage garnishment is an effective way for lenders to reclaim debts from unwilling loan subjects, but it can be messy and drawn out, and they often prefer simpler, more amicable solutions. Through your attorney, you may be able to secure a deal to repay only part of your remaining debt on a schedule you can accommodate. Foreclosure can be a trying and difficult time, but it does not need to be the end of your hopes and aspirations. By exploring the legal powers available to you and working with your lien holder, you may be able to emerge with your finances in decent shape and ready to move on