Can a bank collect your $$ in personal checking accts of other banks after you lose you home in a foreclosure

Question

Can a bank collect your $$$ in personal checking accts of other banks after you lose you home in a foreclosure

Answer 1

When you signed the loan contracts, you agreed to pay them back "X" amount of money.  If, after foreclosure, and depending on the laws of your state, you still owe them money there remains the possibility that they can try to collect from you in that manner.  However, you can avoid this by working with them and explaining your situation.  Most lenders would rather have you give them SOME money on a regular basis rather than collect on you because collections processes are expensive and time-consuming and don't guarantee that they'll get their money.

Answer 2

Not without a judgment.

For home loans, they call it a "deficiency judgment."

This is not common practice, however.

In most cases, the lenders are filing a 1099 for the amount of the loss.

[Sometimes, they don't even bothering doing THAT.]

If you've gotten one, then you're off the hook, because they can't do both.

However, you may be liable for taxes.

Go here and take a look:

http://www.irs.gov/newsroom/article/0,,i...

Most people don't lose a home to foreclosure because they're rolling in dough. My guess is that your finances are in rough shape right now.

With the right tax advisor, you can probably avoid the tax on that "income."

If they don't 1099 you, then they do have the right to pursue you for a deficiency jugment.

If that's a concern for you and if you expect your financial situation to get dramatically better, then it would be wise to see an attorney, and check to see what the statute of limitations is in your state for this kind of debt.

If you haven't lost the home yet, and you'd like to try to figure out a way to keep it, you might want to go to my website:

http://foreclosureresolutioncenter.com/

This has probably been a tough time for you.

I hope the next chapter of your life is a lot better than the last one.

Best of luck.