Posted on: 26th Feb, 2009 03:38 pm
i pre qualified for a deed-in-lieu. can my mortage company garnish my wages if this property sells for less?
I have never heard of this happening but i may depend on your state laws. What state are you located in?
Hi theresa,
In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven by the lender. So the lender cannot garnish your wages for that deficient amount. However, you will have to pay taxes on that deficient amount because it will be considered as your income by the IRS.
Thanks
In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven by the lender. So the lender cannot garnish your wages for that deficient amount. However, you will have to pay taxes on that deficient amount because it will be considered as your income by the IRS.
Thanks
