Posted on: 07th Nov, 2012 06:14 pm
In the event of a deficiency judgement which some lenders will obtain via the courts, the bank, or its collection agency can go after your personal assets based on the specifc Lien laws of the state in which you, or your assets, reside.
Retirement funds such as 401K, pension etc are typically excludable from creditors. Perosnal property, including equity in your home is not...they can go after it as well as cars, boats furniture etc...
If all your assets are in qualified retirement accounts, the bank is well advsied to negotiate a settlement rather then go after the difference between the mortgage and the sale price.,,,otherwise, the bank could end up with nothing : 8)
Retirement funds such as 401K, pension etc are typically excludable from creditors. Perosnal property, including equity in your home is not...they can go after it as well as cars, boats furniture etc...
If all your assets are in qualified retirement accounts, the bank is well advsied to negotiate a settlement rather then go after the difference between the mortgage and the sale price.,,,otherwise, the bank could end up with nothing : 8)
Thanks for sharing this details with us!! robertjohn :)