Consumption and Real Estate
Can our 2nd mortgage company attach our wages once our home is sold as a short sale?
Question : Can our 2nd mortgage company attach our wages once our home is sold as a short sale?
Our 2nd mortgage company is suing us for $ 25,000 (the balance on our 2nd after they signed off the lien for the short sale). They have submitted paperwork to attach 25% of our wages until it is paid off? Is their any legal way out of this?
2nd mortgage
Best answer:
Answer by LE
Nope. If there was a legal way out, they would not have been able to get the garnishment.
The only way out is to quit your job. Then, when you get your next job, they can attach to that income. Is there a reason you feel you should be able to steal from them?
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#2 written by armychick_2001 1 year ago
It will be up to a judge to decide if it is legal or not. Now that they no longer have their security, they are entitled to get their money back in other ways.
You may need to get an attorney to protect your interest, and even then, you may not be able to stop it. He might be able to negotiate a payment plan in lieu of garnishment.
If you miss any payments, though, the garnishment will be re-instated.
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#3 written by RE its what i do 1 year ago
Hi Tammy,
Unfortunately, signing off on the lien doesn’t release you from the liability of the mortgage. Sorry
If however, you are selling the house because of financial hardship, it would be better to get the 1099. It is actually a 1099C which is considered income and does reflect on your taxes. Having said that, you can file “insolvency” which would allieviate the tax burden from you. (This is not tax advice – seek professional tax advice – disclaimer, sorry).
It would also be a good Idea to check your states laws about foreclosures, some states are actually passing temporary laws to help homeowners.Good luck
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#4 written by Dawni Do Right 1 year ago
Not unless you can work out a payment plan, but I doon’t know as though you would be successful in that route, since the 1st loan was sold short & didn’t pay off the 2nd.
The bright side is you shouldn’t receive a 1099-C on it since it’s being repaid through a deficiency judgment & writ of garnishment.
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#5 written by alterfemego 1 year ago
No. Look, if they offer you a plan whereby you are able to repay that money over a period of years without interest, feel lucky! What they could do is send a 1099 form to the IRS grossing up your income for this year causing you to pay a lot more in income tax. So don’t walk away, work with them on this one. You promised to pay and if the proceeds from selling the place aren’t sufficient enough to cover both loans, then you will need to work at paying it off. I feel your pain, I’m a Realtor and trying to sell my home on a short sale.
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None that I know of you legally owe them that money.