Can My Mortgage Company Garnish My Wages After Foreclosure?

If you have lost your home due to foreclosure and the foreclosure still does not cover the amount you owe to the lender, he may be able to garnish your wages depending on a few factors. The first factor is dependent on whether the foreclosure is judicial or non-judicial, whether the loan that you took was the first time, and whether the home loans in the state that you live in are non-recourse or recourse loans.

What are the Rights of the Lenders to Garnish Wages?

Loan modification help will guide you to take care of wage garnishment. Before a lender starts to garnish wages from the borrower, he has to get a judgement from the court to garnish wages.  Often, private lenders as well as mortgage companies do not come under this category. Before a mortgage lender can garnish the wages of a borrower, he has to sue the borrower and avail a judgement to get the money.

How can Wages be garnished?

A loan modification inspector will be able to provide you advise in order to prevent attachment of wages.  If the lender goes to court regarding the amount that is owed to him by the borrower, then the wages of the borrower can be garnished. As per this judgement, the employer can hold back the amount and pay it to the lender. But there are certain creditors, like the IRS that do not require a court judgement to attach wages. There are also limits to the amounts that can be garnished from the wages.

But sometimes, the borrower can make an objection to attachment of the wages. Wage attachments are used when the debt is being recovered and it continues till the debt is fully recovered.  There can only be one wage attachment in the employee’s wages at a time. Simultaneously, a child support order may be allowed to operate with a levy of tax. The amount attached by the employer is remitted as per the court order.

In conclusion, a mortgage company can garnish wages if they have a court order to do so after foreclosure.