Facing the foreclosure of your home is an upsetting time and notifications from your lender can be confusing and a jumble of legalese that is difficult for a non-lawyer to understand. People have many questions and concerns regarding foreclosure, a major one being: “Can the bank garnish my wages in foreclosure?”

What Is Wage Garnishment

Wage garnishment is when a lender is able to deduct funds directly from your salary to repay a debt you owe to them. Most common form of wage garnishment is to deduct the amount owed directly from your paycheck. This is done to further avoid missed payments. In order for a lender to be allowed to do this, they must first obtain a deficiency judgement against you. Then, they will have to submit a motion with the Court to be allowed to deduct the funds straight from your paycheck.

Can The Bank Garnish My Wages In Foreclosure?

During a foreclosure, many people are concerned that the bank or their lender will attempt to garnish their wages in order to receive payment for the mortgage. Fortunately, wages cannot be garnished during the foreclosure process. There are several reasons for this. The first being that in order for the lender to know how much you truly owe, they will have to sell the property at a foreclosure sale. If the house is sold for an amount that covers the full amount of what you owe, then you are not responsible for any deficiency and wages are not garnished.

If there is a deficiency (meaning the house sold for less than what you owed on your home loan), then you would be responsible for this debt. However, seeking wage garnishment is a lengthy process and if you are in a financial situation in which your mortgage cannot be met, then there may be other forms of recourse for you.

Contact our office if you are facing foreclosure and our experienced team will review your specific situation and help you develop a plan of action to getting your life back on track.