What can a mortgage holder due to me after a short sale?
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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
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 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.
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