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2007 foreclosure on michigan home with 1st&2nd mortgage question?

our home was foreclosed on due to job loss in michigan found work out of state and had to move tried to sell home reducing it 10,000 every month to no avail. we paid 280,000 now on market for 180,000 recieved from 2nd mortgage holder a demand for payment on the 26,000 equity loan. can they garnish my wages? I recieved a 1099 for income tax from 1st mortage holder. I am a nervous wreck. has anyone dealt with this already? any suggestions what to do? thanks for any help

Public Comments

1. Yes, they can sue for judgment and garnish wages, if they so choose. The fact that you lost your house to foreclosure doesn't relieve you of the debt to which you agreed. Apparently the holder of the first isn't going to chase you down for the shortfall, since they gave you a 1099 for the deficiency. The holder of the second may not be that generous. They can sue you for default, obtain a judgment, and then use that judgment to obtain a garhisnment decree. You can only wait to see what happens. On the upside, that 1099 amount no longer needs to be claimed as income on your federal taxes for 2007, since a waiver has been placed on that requirement. However, it may still need to be claimed on your state income tax return. Not all states followed the feds in that regard. Good luck.
2. Hi, You are speaking to someone who had a promisory note that was $6000 from 2000!!! I would pay some, paid it down to about half...hard times....bills...put it on the back burner....then I would pay some....well...whenever you begin to pay some on a debt, it is like starting all over again from the a date...so if a debt is, I think about seven years old....it is considered an old debt...one that they can't do too much with....well then this collection company sent something about the debt....and it has a lawyer's name on it from Lombard, Illinois....I wasn't sure if it was "real" and I wasn't going to be paying something to someone that I knew it wasn't real....oh it was REAL ok.....they put a judgment and then they have garnished my wages. I went to look at my pay online and was SHOCKED to find that they had taken $326.00 every two weeks .....they just CAN DO IT!.....Almost $700 a month! I told them I owe Bank of America and Chase and both of them have accepted a $150-$160 a month payment so I could get on track....but these debt collectors....$700....so you better know that if you owe them...and the way the economy is....I think you are going to see a lot more of this....debt collectors, be in banks or credit card companies or smaller concerns...they will do WHATEVER it takes to get their money....they wouldn't care if your husband or wife had cancer......they want their money. I had just found a debt program that I really liked and respected. I was AMAZED that something like this sounded so simple yet I know it could work for me....John Cummata's Turn Debt Into Wealth. I am not working for him, it is not any kind of fast deal...it is something that I had planned on doing and the debt I am speaking of was included....so the way to look at it....in 6-7 months...the debt will be paid....but then I guess I will have to work like heck to get the "judgement" off of my credit report...but heck...with John Cummata's plan...you won't have to worry about the green eyed monster called DEBT. His whole plan is to make you rethink about spending....and credit and debt aren't part of the new thinking.....look on Ebay if you have to for people maybe selling their cd's and workbooks....I am SOOOO sorry for the predictament you are in...it is sad and terrible...but if it is any solace....their are millions more like you out there. Check the law for your particular state when it comes to what they CAN do with garnishing wages. Illinois had the right to take 15 percent of my net pay....hence the $326....afterall, I am a nurse and everyone knows how much nurses make (especially since we used to make $8-9 dollars an hour doing the same back breaking work. Oh well....enough on the soapbox.....Take care, sincerely, Miriam
3. OneGreen, Do not ignore this, you signed a contract and if you fail to follow the contract they will continue to collection as described. If you have not done so, I suggest contacting a bankruptcy attorney. If your home already went to foreclosure. the second on the mortgage may not have a claim. HUD also provides Housing Counseling which may be another option. Their website is below. Information is on right hand side of screen in the links