I am getting ready to go through a foreclosure on a rental property that I purchased a couple of years back. What are the affects of a foreclosure? Can my wages be garnished?

First, you are going to suffer a big hit on your credit score.

Secondly, when the property sells, and the proceeds applied, you will be responsible for the left over balance.

You can be sued for that balance, and if a judgment is obtained, then they would be able to garnish wages, levy bank accounts, and or personal property.

Hello a:

Ask your lender if they would let you do a short sale. That would basically mean that they'd give up the deficient amount. Your credit will take a hit, but you won't owe anything.

I don't know if they'll do it or not, but lots of lenders are. They're going to sell it at auction for a loss, which they don't want to do, and/or they'll add it to their growing list of unsalable properties in its inventory, which it ALSO doesn't want to do.

If the deficiency is large and they think they can collect, they'll try. If they think its going to be throwing good money after bad, they might go for it. It's certainly worth a shot.

excon