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Banks can not garnish a homeowner's wages during the foreclosure process. This is because the real estate is collateral for the loan.
Thus, the bank will have to take the property all the way through the foreclosure and have it sold at a county sheriff sale. This is the legal mechanism by which the bank is allowed to attempt to recover the amount it is owed on the loan. If the sheriff sale pays off the mortgage in full, there is nothing further to collect.
If the property does not sell for enough to pay the loan off completely, some states allow mortgage companies to sue for a deficiency judgment after the foreclosure. Again, not all states allow this under the foreclosure laws, but it would give banks the right to garnish wages after the foreclosure, if they decide to sue for the judgment.
Banks rarely, if ever, sue former clients for deficiency judgments, though, because they know foreclosure victims do not have a lot of extra cash to pay down another judgment after losing their homes. It would take the bank too much time and money to sue again, when they didn't collect very much on their original foreclosure lawsuit.
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Can wages be garnished after a repossession to collect the balance?
Can wages be garnished for the balance of an auto loan in the state of Delaware
Can your federal wages be garnished?
Yes. Employment income from federal wages can be garnished for taxes, fines, or judgments if lawfully executed.
What percentage of wages can be garnished in Ontario?
According to the Ontario Wages Act, up to 50 percent of an individual's gross monthly wages can be garnished. However, employment insurance, social assistance, and pension payments cannot be garnished.
Can wages be garnished in Colorado?
Yes
Can your wages be garnished after debt is paid?
no
Can my check be garnished for foreclosure?
It cannot be garnished "for foreclosure," but if there is a deficiency after the house is auctioned - as is usually the case - the creditor can sue for the balance due and garnish wages just like any creditor in MOST states. Some states limit the foreclosing entity to the proceeds from the auction.
If wages are garnished in the us and move to Canada can wages be garnished there?
yes
Can your wages be garnished when wages are already garnished for child support in Tennessee?
Yes
Can your income tax check be garnished if your wages are already being garnished?
if my wages are being garnished can they still take my income tax check?
Why do wages get garnished?
knowing the lawpeoples wages mostly get garnished from law suites and judgments from the court systems
Can wages be garnished after a repossession to collect the balance?
Can wages be garnished for the balance of an auto loan in the state of Delaware
Why are wages garnished in South Carolina?
Wages cannot be garnished for credit card debt in South Carolina. They can be garnished for unpaid taxes and child support.
In Virginia can your wages be garnished for medical bills?
can you be garnished on your disibilty
If you live in NJ and work in Pa can your wages be garnished for credit card debtin NJ?
Yes, your wages can be garnished wherever you work for a debt. Generally, wages are not approved to be garnished for unsecured debt.
Can your federal wages be garnished?
Yes. Employment income from federal wages can be garnished for taxes, fines, or judgments if lawfully executed.
What percentage of wages can be garnished in Ontario?
According to the Ontario Wages Act, up to 50 percent of an individual's gross monthly wages can be garnished. However, employment insurance, social assistance, and pension payments cannot be garnished.
How much wages can be garnished?
30%
