What assets can the bank go after during a foreclosure on a home?

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What assets can the bank go after during a foreclosure on a home?

Asked on November 4, 2010 under Real Estate Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

What I think you mean is after the foreclosure, if there is a deficiency judgment ( where the house sells for less that the mortgage amount) what other assets can the bank then go after.  The answer is: any of them.  They becaome a judgement creditor and so they can use any of the methods thatthe law allows to collect the remaining money.  They can garnish salary; they can levy bank accounts, etc.  Now, let me ask you: how far in to the foreclosure proceeding are you?  Have you spoken with anyone about loan modification?  Have you spoken with anyone about giving the bank a deed in lieu of foreclosure and them waiving the deficiency?  Or a short sale with the same waiver?  Please go and see someone for help.  Good luck.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The answer, unfortunately, is what assets *can't* it go after--since that's a shorter list. Basically, certain forms of public assistance or retirement assets or payments are protected; if you have income streams or assets like that, you should consult with an attorney to see whether those specific ones are protected from garnishment or execution. Otherwise, bank can go after other real property; after personal property; after bank accounts (or brokerage accounts that are not of protected retirement funds); after wages or salary; or after other assets or income you might have (e.g. say you have a small business and have accounts receivable). If you are deeply underwater on the home, so there will likely be a large remaining balance after foreclosure which the bank may seek satisfaction of, you may wish to consider bankruptcy as an alternative.


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