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Deficiency judgment, can we be liable?

Posted on: 13th Aug, 2009 10:23 am
My wife and I just maried, she moved into my home (her name is not on it) and we cant sell hers for the curent loan amount. We would be taking a 30k hit at best right now if she sold it. If she walks away and turns in her keys could she still get hit with a deficiency judgment? If so can they take from her pay or pension? We need her full income since I'm laid off.
Thanks for any advice

PS: Michigan resident.
Hi ipsmarkk!

Welcome to forums!

If your wife walks away from the property, then the lender would foreclose it and sell it off to recover the dues. He will have the rights to sue your wife for the deficient amount resulting from the sale of the property. If your wife can't pay it, then he would garnish your wife's income.

In my opinion, your wife should apply for a deed in lieu of foreclosure. This will help her to surrender the property to the lender. The lender will try to sell it off. In case of a deficiency amount, the lender will forgive it. Thus, the question of garnishing wages will not arise.

Feel free to ask if you've further queries.

Sussane
Posted on: 13th Aug, 2009 10:31 pm
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