Mortgage co.wants to take next three years tax returns for the deficency amount after a sheriff's sale can I stop them .I have five kids we both work and we depend on this. Thanks

Yes, you can stop them by adjusting your withholding and, if applicable, getting advanced Earned Income Credit payments with your pay check, so that when you file, you OWE money.

ANY refund is an interest-free loan to the government and should be avoided, if possible.

That is incorrect. A private mortgage company cannot (in general) garnish your tax refund. A federal agency such as HUD can, but a private company cannot.

I assume the state you live in allows a deficiency judgement (some states do not). The mortgage company (as I said) cannot garnish your tax refund, but can get an order to take the money once it lands in your account. So you are better off adjusting your tax returns to avoid refunds.

But if you are working, the company can garnish your paycheck, so that may not help you.

You may be better off filing for bankruptcy (although that wouldn't help against a federal debt). Indeed, you should have considered that before foreclosure, Sorry.

I diaagree.

Any calid debt can be presented to the federal court for collection. The court then issues a collection order which the IRS MUST honor.

It is rarely dobe because itbis time-consuming, expensive and (as I noted in my original answer) easily defeated, but it CAN be done. I collected a three-year old rent debt this way.

I know the deposit account can be garnished, but if the check is directly cashed, I have not heard that IRS refunds can be garnished by private parties.

I just reread IRC 6402 and I do not see anywhere in the statute that a private party can garnish a tax refund (the exception being child support).

I did it twelve years ago, and I assume the law has not changed.

It is not easy to attach a tax refund, but it is possible if the creditor has a valid judgment.