Posted on: 20th Sep, 2009 01:25 pm
I reside in NJ but own an investment home in Florida. This was a nightmare. The home never rented and was on the market for the last 2 years. The home is currently going through forclosure. A few months ago I got a buyer for the property. I owe 280K for the 1st mortgage and 65k for the second. The first lender has agreed to accept 133k settled in full with no deficiency. the Second lender Chase has agreed to 10K but only to release security interest and there will be a defiency of 55K which they say I will still owe. The attorney says that they probably won't come after me for the deficency and they only have 5 years from the date I last paid as per Florida law. I am a single parent and the sole provider for my daughter. Per NJ law, can my wages be garnished? If there is a deficiency judgement and I do not have the means to pay, what steps against me can be taken?
Since you are workign with an attorney he or she is the best person to guide you in this situaiton
Good luck
Good luck
Hi Sage,
The second lender can come after you for the deficiency after the foreclosure. Since they are not forgiving the amount, they have the right to come after you to recover it. They can sue you and obtain a judgment against you.
The lender may not come after you. But it is completely at their discretion. As far as I know, wage garnishment is allowed in NJ. However, garnishment should not exceed 10% of your gross salary. Money cannot be withheld if your disposable weekly earning is less than $154.50 per week.
If you want to avoid any kind of judgment, you may negotiate with the lender and work out a payment plan to pay off the outstanding balance through over a certain period of time.
The second lender can come after you for the deficiency after the foreclosure. Since they are not forgiving the amount, they have the right to come after you to recover it. They can sue you and obtain a judgment against you.
The lender may not come after you. But it is completely at their discretion. As far as I know, wage garnishment is allowed in NJ. However, garnishment should not exceed 10% of your gross salary. Money cannot be withheld if your disposable weekly earning is less than $154.50 per week.
If you want to avoid any kind of judgment, you may negotiate with the lender and work out a payment plan to pay off the outstanding balance through over a certain period of time.