What can a mortgage holder due to me after a short sale?

We lost house in short sale and now the 2nd mortgage is coming after us. Can they take a land contract house (not in our name) and garnish wages? We bought a house from our in-laws on a land contrat that is located in another state. The house is still in their name. Can the mortgage holder take this house and how much can they garnish from our wages?

Asked on June 12, 2012 under Real Estate Law, Michigan


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Unless your state has a statute like California does where a lender in a non-purchase money scenario receives some cash pay out in a short sale transaction you potentially can be subject to a deficiency judgment with respect to the second lona that you have written about.

Assuming a deficiency judgment is obtained against you as to the second mortgage, your assets could be subject to levy in addition to a wage garnishment as to your pay check from your employer. 25% of one's net pay check per pay period is the standard rate of garnishment. I suggest that you consult with a real estate attorney further with respect to the question that you are writing about.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.