Will I Have My Wages Garnished After A Short Sale?

Many people are concerned about a deficiency after a short sale. They are afraid that their bank may garnish all of their wages.

It's scary to think that at any moment your bank could grab every dime you make
and leave you broke. Most people short sell their house because of financial
problems.

They can't afford to lose a month's worth of salary. But, here is the good news. There is a maximum amount that anyone can garnish. According to the Department of Labor's Website, anyone garnishing your wages can take a maximum of 25 percent of whatever you earn.

Sure, it's not fun to have 25 percent of your earnings taken. But, 25 percent is much less than the 100 percent that most people think they will take.

So, even if you do get a deficiency on your short sale, it is not the end of
the world. They cannot take all of your money and ruin your life.

Before your lender can garnish your wages they usually have to go to court and
get a judgment against you. That takes time and costs money. A lawsuit can cost
them $1,000 or more.

The high costs causes lenders to think twice before sueing most homeowners.
Even better news is the fact that there are a lot of loopholes. For example, in Florida the head of household is exempt from garnishment.

Most garnishments have to be approved by a judge. If you can show the judge
that you have kids to take care of, then they may deny the garnishment.

Or, you can show the judge that a garnishment would cause you serious financial
hardship where you couldn't afford gas to drive to work.

The bottom line is that so few homeowners who short sell their house will ever
be pursued with a garnishment.

Thanks for reading this, Bion Grady
Bion is a Real Estate Agent at Maximum One Realty Greater Atlanta.
Copyright 2012 SFI Marketing Institute, LLC. All Rights Reserved.


Bion Grady, Maximum One Realty Greater Atlanta, and the Stop Foreclosure
Institute are not affiliated in any way, shape, or form with the government.
Our services have not been reviewed or endorse by the government or your
lender. Most lenders willingly work with agents on short sales. Why?

This is not intended as legal, technical, or tax advice. Please speak with a
licensed professional before making any decision. Information is deemed
reliable but not guaranteed as of the date of writing.

The views expressed here are Bion's personal views and do not reflect the views of Maximum One Realty Greater Atlanta.