QUESTION

Will the lender be able to put a lien on all of my remaining assets?

Asked on Jul 31st, 2013 on Bankruptcy - Florida
More details to this question:
My house is about to go into foreclosure. What's going to happen to my bank account, my 401K, my car, and any thing that I have left, after the foreclosure?
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8 ANSWERS

No. If they sell the house at a loss, they will have to sue you in a civil lawsuit. They can only put a lien on your property if they get a judgment in court.
Answered on Aug 13th, 2013 at 8:51 PM

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Complex Litigation Attorney serving Costa Mesa, CA at Thomas Vogele & Associates, APC
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There is no connection between a foreclosure on your home in California and the other assets you list. California law prohibits a mortgage lender from trying to recover a "deficiency" or the difference between what the house is worth or sold for and the amount you owe on the mortgage. A mortgage lender can only go after your house, nothing more. Other creditors can your bank account, cars and other non-exempt assets, but California also prohibits a judgment creditor from enforcing a judgment against your 401k or other qualified plans. Have you considered working with the bank on a short-sale or a deed-in-lieu of sale? This will save the bank money and they will frequently pay you to move out or maintain the property for them while they try to sell it.
Answered on Aug 01st, 2013 at 3:32 PM

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Personal Injury Attorney serving Glendale, CA at JT Legal Group
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In California, the primary lender cannot seek a deficiency if they are foreclosing through the means of a non-judicial foreclosure. I recommend you talk to a bankruptcy lawyer to really see what your best options are before the foreclosure sale date.
Answered on Aug 01st, 2013 at 11:10 AM

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Bankruptcy Attorney serving Las Vegas, NV at A Fresh Start
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Nothing unless & until some creditor sues you and obtains a court judgment against you. Your 401K retirement is entirely protected, your bank account, car and paycheck are protected to some extent under state laws called exemptions. As every state has different laws, you will want to check these laws on the state website.
Answered on Aug 01st, 2013 at 10:59 AM

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This is a state specific question. In Idaho, just because a foreclosure has gone through does not mean a lender can do anything more at that point. There must be a deficiency and then they have to go through the Courts to lien or garnish anything beyond the property. You should have full legal notice of a lender should pursue these ends.
Answered on Aug 01st, 2013 at 10:40 AM

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Bankruptcy Attorney serving Walnut Creek, CA at Alan E. Ramos Law Offices
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If the loan in question was a purchase money loan (that is a loan used to purchase the property), the lender cannot collect a deficiency (the difference between the sale price of the property and what is owed). If the foreclosure is non-judicial (sale of the property on the courthouse steps), the law does not allow for a deficiency whether the loan is purchase money or not. If the loan is not purchase money and the foreclosure is judicial (the lender files a law suit), a deficiency can be claimed by the lender. Typically, the exposure that borrowers have is liability for sold-out seconds (junior loans that are wiped out by the foreclosure of the senior loan). Once again, if the loan (the junior loan, in this case) is a purchase money loan, there is no claim for deficiency allowed. If the junior loan was a refinance or was made for something other than purchase of the property, the debt becomes unsecured (just like a big credit card bill) and the lender could sue you to collect it.
Answered on Aug 01st, 2013 at 10:24 AM

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General Law Attorney serving Cherry Hill, NJ at Mark S. Cherry, Attorney at Law, PC
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In New Jersey, after a sheriff sale a lender must file for a deficiency judgment. It is rarely done due to what is called a redemption period.
Answered on Aug 01st, 2013 at 9:57 AM

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Commercial Bankruptcy Attorney serving Davie, FL at Law Office of Jeffrey Solomon
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The lender only recovers the property with the foreclosure judgment. The lender cannot at this time attempt to recover any other assets. Later, the lender can attempt to obtain a separate money judgment for the difference in value between what you owed in the foreclosure judgment and what the property is worth. Certain assets such as 401ks would be exempt from collection. You should consult an attorney about the exemption issues.
Answered on Aug 01st, 2013 at 9:57 AM

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