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ajamz asked:
I have an investment property that I can no longer make payments on and wanted to see if the lender can come after my salary, 401k, etc. in Virginia if I walk away from the house.
I have an investment property that I can no longer make payments on and wanted to see if the lender can come after my salary, 401k, etc. in Virginia if I walk away from the house.
Tags: 401k, Foreclosures, Investment Property, Salary
October 16th, 2008 |
Tags: 401k, Foreclosures, Investment Property, Salary
October 18th, 2008 at 7:16 am
Yes, the lender can do that, and will strongly consider doing so if you have sufficient assets and income to pay off any deficiency judgment involved.
October 18th, 2008 at 10:34 pm
If the lender forecloses and sells the property for less than you owe (including all the foreclosure fees, interest, per diems, selling costs, etc.), it can sue you for the balance. If the lender then gets a judgment against you, your pay is subject to garnishment, your real estate can be liened and your bank accounts can be seized. Your 401k is probably exempt.
Also, be aware that judgments are valid for a very long time - 20 years in some states. They also accrue interest until paid - at much better than market rates.
October 21st, 2008 at 11:43 pm
They can come after your wages/salary and ask the court to garnish your wages. Your 401(k) may be out of bounds - check with a lawyer before doing anything.