[daisysmiles]

I went bankrupt about a year and a half ago, I let me credit cards and my car. I kept my house hoping I could hold onto it, but with the arm going up like 3 points, the payments bacame too much. Becaue I owe so much and there are like a million house for sale in my town I could not sell it. So I let it go and have about 2 more months to get out. I took a 2nd mortgage out about 2 months before the arm came due, but never made a payment because my company that I worked for went bankrupt. It was for about 11,000 dollars and the payments were about 160.00 a month.They sent me court papers about 3 months ago saying they filed something in court on the 2nd mortgage. I still don't know what it means. Can they garnish my checks for the house payments and 2nd mortgage, I am really worried as I have to support my kids. It is really a nice house and I kept it up well, it has almost everything new in it. I just want to leave and start over with just an apartment for me and my kids, we lived there 12 years and its hard moving on, but we will be all right, I just don't want them to take money I need to support my children. I just want to know what to expect when I move out in a month, will they take me to court, or what. The sheriff sale was March 29, but it did not sell. Thanks

[sprtbke]

There's a lot of laws that differ depending on the state. They can't garnish any wages, just place the it on your credit file. Even when the house is sold, here in Texas it's a three part eviciton process. The first is a notice to vacate which can be for 3 or 30 days. If you don't leave, then The second is the FED citation, which will give you a court date. If you fail to leave by 5 days after the court date, then on the 6 day the get a writ of possession, which they must set a date and time for the sheriff or constable to proceed with the eviction. You have to be out on that date or they will remove all your belongings to the curb and its abandoned property.

If you wait 2 years after the foreclosure, some credit "repair" companies can remove it from your credit record. Ive personally seen it done. Good luck.

[ScottGem]

You don't say where you are, and the laws do vary per state. A few state don't allow garnishment of wages, but most do. Letting the house go is not the best move because it does not remove your liability.

What will happen is the lender with the first mortgage will take possession of the house and attempt to sell it. Whatever they sell it for will be applied towards your outstanding balance. The likelihood is that it will not cover the balance. If it does anything left over will go to the second mortgage holder. Unless the sale covers both, you will still owe someone. Now the fact that you were in the house for 12 years is a plus as it means you should have built a good amount of equity. On the flip side, that it didn't sell at the sheriff's auction on 3/29 is not a good sign.

It sounds to me like the second mortgage lender filed suit against you. You apparently didn't respond, so they probably got a default judgement against you. Which means they CAN garnish your salary if your state laws permit.

You really need to read such papers fully or ask someone to help you understand them.

[daisysmiles]

I Live In Michigan And I Think They Do Allow Garnishment Of Wages Here. I Had No Other Choice But To Let It Go, And Yes, I Think They Did File Suit Against Me. I Just Hope Their Amount To Take Out Of My Check Is Not Too Much Where I Cannot Provide For My Children. Thanks

[ScottGem]

Generally, they can take out 25%. So if it would be in your interest to try an negotiate a settlement.

[Home Retention Agency]

Depending on your parcel size, you have either a six or twelve month redemption period.

While most lenders are not going for judgments, you may face some serious challenges with that second. You still have LOTS of options, and I suggest you do something, rather than simply riding this thing out and doing nothing.

We work in Michigan- contact me and we can discuss your specific situation.