Posted on: 04th Mar, 2009 08:53 pm
I currently own a home worth less than what I owe so I am unable to sell it. Because of health reasons, I have moved out of the state in which the house is located. If I give the house back to the bank, can the bank garnish my only income, which is a pension?
bank can not garnish all the amount what you are receiving.they need to see that the person has enough amount for their basic needs first.
if you are lagging behind in the mortgage i will suggest you to rent the property to someone if you are not living there any longer.
do one thing when you receive rent on your property then add some amount from your own kitty and then pay for mortgage installment.
wait for few more time once you reach the value when your value of the home becomes equivalent or less compared to " how much you owe to the bank. then you either can refinance the loan with t& c suitable to you.
thanks
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if you are lagging behind in the mortgage i will suggest you to rent the property to someone if you are not living there any longer.
do one thing when you receive rent on your property then add some amount from your own kitty and then pay for mortgage installment.
wait for few more time once you reach the value when your value of the home becomes equivalent or less compared to " how much you owe to the bank. then you either can refinance the loan with t& c suitable to you.
thanks
:arrow: [/quote]
Hi lstephen
As far as I know, pension and social security cannot be garnished by any lender. However, if you have another property, then the lender can place a lien on it. I would suggest you to speak to the lender about a deed in lieu of foreclosure. In this process, though your credit score will be lowered, the deficient amount resulting from the sale of the property will be forgiven.
Thanks.
As far as I know, pension and social security cannot be garnished by any lender. However, if you have another property, then the lender can place a lien on it. I would suggest you to speak to the lender about a deed in lieu of foreclosure. In this process, though your credit score will be lowered, the deficient amount resulting from the sale of the property will be forgiven.
Thanks.
Yah, the banks cannot claim on the mandatory funds like provident fund. Similar is the case with the life insurance when a person gets benefit from insurance of a lost policy holder. Besides, there is an upcoming term rent back home. This is a good option where you need to sell your ownership, get the home on rent again. With pass of time you can again buy the same home when proper funds are collected. This may help to avoid any rumours from the banks for not paying the repayments. This may extend some time to have the costs rebuilt enough to cover any losses in this process.