Home Foreclosure: Answer to the Question, “Can My Wages be Garnished?”


A common fear for homeowners facing foreclosure is that their wages will be garnished. This can cause added stress because these are already difficult financial times. Following is some info that may allay your fears as you go through this difficult process.

And the answer is . . .

No, as you go through the home foreclosure process, your wages cannot be garnished. The legalities behind this is that the home itself is pledged as the collateral for the loan (mortgage) – not your wages or any other property. So while you’re in foreclosure, your wages are safe from garnishment.

But, you’re not out of the woods.

What will happen moving forward if you are not able to become current with your mortgage is that your home will be sold. You have several options here. One of the most common is the deed in lieu of foreclosure.

Home Foreclosure: What is a Deed in Lieu of Foreclosure?

 It’s when the you (the home owner) signs over all rights to the home back to the lender — in lieu of allowing them to foreclose on the property. You can do a deed in lieu with recourse, or without recourse. You could be held responsible for the balance (deed in lieu with recourse), depending on what you work out with your bank/lender.

What you want to get from your lender in these circumstances is an agreement for a deed in lieu without recourse. This means the lender can’t come after you for any balance due.

Yes, your credit will suffer if you proceed with this option (with or without recourse). But at this point, who cares. Your credit is probably already in the dumps anyway.

Back to your wages being garnished . . .

Wage Garnishment & Home Foreclosure: Your Rights When Dealing with Creditors

Many unscrupulous lenders will use the threat of wage garnishment to try to bully you into continuing to make mortgage payments – even when you can’t afford it. Don’t fall for it.

And by the way, this tactic is patently illegal.

Bone up on your consumer rights when it comes to debt repayment. They vary from state to state. But across the board, creditors can’t bully you, lie to you or threaten you on any level. Remember this fact when dealing with creditors — whether you’re discussing wage garnishment during the foreclosure process, credit card debt or any other kind of debt.

Live Rent Free!

Learn how to get a 1-3 or even a 6-12 month break from making any mortgage payments by just a simple series of phone calls (to the right person) followed by a faxed form (form included).


P.S.: Business Opportunity: Learn How to Start a Foreclosure Cleanup Business. Read how one foreclosure cleaning biz owner makes up to $40,000/wk.

P.P.S.: Found this post informative? Follow Foreclosure Business News on Twitter.

Learn more about foreclosures, deed in lieu of foreclosure and wage garnishments in the video below.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

1 Comment so far

  1. […] This post was mentioned on Twitter by John Foreman, Yuwanda Black. Yuwanda Black said: Home Foreclosure: Can Your Wages be Garnished? http://bit.ly/1Xz1UZ [Lots of folks are worried about this; knowleddge is indeed power] […]