Legal Question in Real Estate Law in Michigan

Fourclosure Wage Garnishment

The bank is foreclosing on my home in July we have completed the 6 month redemption period, vacated the proporty and live in a rental that cost less than our mortgage even before it adjusted (because it adjusted so high we could not afford it). My wife is not currently reasponsable for any part of the mortgage. When the bank sues me for what it loses they will undoubtedly garnish my wages? My wife and I both work for the same family owned business. We share the same checking accounts but don�t have any assets. Can the bank legally look into our joint account? We don�t have much money and can�t afford to pay them anything. We also must provide for our son who is Autistic. We've heard in many cases the bank simply writes off the debt. Is that true? Any help you provide would be greatly appreciated


Asked on 6/16/07, 10:44 pm

1 Answer from Attorneys
Sam Calvert Calvert Law Office

Re: Fourclosure Wage Garnishment

The question says you are in Minnesota. If you are in another state this should be ignored. The FIRST mortgage on the property probably was extinguished by the foreclosure. So, unless there is a guarantee (such as VA or FHA) you may not owe that debt any more. If there is a second mortgage, however, almost certainly you will be sued by the holder of that bank. To be definitive about this I would want to look at the paperwork, but the above should be reasonably accurate as a general statement.

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Answered on 6/20/07, 2:00 am


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