Deficiency Judgments Lawyer
Wage Garnishment Attorney
Deficiency Judgments/Wage Garnishment
There was a myth in the real estate business that home prices never went down. Market values went up and home equity loans became all the rage. Unfortunately, whether you bought stock on the stock market, a house —- or pork bellies —- market prices do go up and they go down. If your home value dropped and you owed more on it than it was worth, you were "under water."
The Perfect Storm
Now, if you lost your job, as millions did, or experienced divorce or some other financial setback and could not make your mortgage payments, the lender may have elected property seizure, or you may have sold the home in a "short sale" when the value was at its lowest.
The lender did not get the steady stream of payments it contracted for in the promissory note, and the sale of the home at such a low price did not pay off the loan you took out. They may elect property seizure.
By contract, you now owe the deficiency between what they contracted for and what they got.
Deficiency Judgments
It is possible to negotiate in advance and get the lender to release you from this debt. It is also possible they or their collection agency will not pursue you. They may not pursue you immediately, but wait until your financial status has rebounded. In Florida, the bank can wait up to five years.
They can then get a deficiency judgment and can collect money from you through account levies from bank accounts, wage garnishment or any other way judgments are normally collected.
Wage Garnishment
Wage garnishment is simply the use of a judgment to authorize taking a regular amount of money directly from your employer, reducing your paycheck. There are a few limitations on garnishment, e.g. if you are a head of household supporting others. The amount and percentage of your pay taken are also limited.
Contact us about the options for you. We can advise you and represent you in any bankruptcy or foreclosure prevention matter.
