A subject that is a recent area of inquiry from my clients is Wage Garnishment. Wage Garnishment, as I explained in previous posts, is the lenders ability to deduct money directly from your salary if they obtain a deficiency judgment against you. Typically, a garnishment becomes part of the payroll process, meaning the creditor deducts the money directly from your pay check. A client recently approached me asking about the possibility of wage garnishment during the foreclosure process. The good news, I explained, is that wages cannot be garnished during the foreclosure process. The bank must go through the entire foreclosure process before they can garnish your wages. In order for lender to know how much you owe, the property first has to be sold at a foreclosure sale. If the property is sold for enough to pay off the loan, nothing more is owed by you. Also, the wage garnishment is not automatic. After the lender has obtained a deficiency judgment against you, but before they receive a writ of garnishment, the lender must file a motion with the Court requesting that they be granted the right to deduct money from your paycheck. So, there are several steps that have to occur before the bank can come after your wages.
It’s not a surprise that lenders don’t correct the misperception about the possibility of wage garnishment during the foreclosure process. This is one of the many reasons why it’s important to be well informed and up to date on current Florida law.
If you are interested in learning more about this topic, you can either post a comment to this blog, contact me, Larry Tolchinsky, a Real Estate Attorney, by email, or call me at (954) 458-8655 and I will be happy to answer your questions. I offer a free initial consultation.
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Can the Bank Garnish my Wages after Foreclosure if they are seeking a Deficiency Judgment against me?