How long does it take to for a lender to garnish a borrower’s wages after a loan default?
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How long does it take to for a lender to garnish a borrower’s wages after a loan default?
Due to economical difficulties I can no longer make the payments on an undeveloped piece of lake property that I have paid down from $55K to $31K. I’ve made timely payments for about 7 years. The bank manager told me the loan would immediately be turned over to their legal team to take me to court in pursuit of garnishing my wages through my employer to pay the bank. A well respected realtor and trustee of another bank told me that was ridiculous. He said due to the high volumn of loan defaults, it would take 2-3 years for anything to happen, and even then, garnishing my wages would not happen. I own no other real property so there is nothing to take from me. Who is correct?
Asked on April 5, 2012 under Real Estate Law, Tennessee
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The only person that can tell you what the status of foreclosure actions are in your state is an attorney. Although the bank manager and the realtor may have some knowledge, theirs is not the most reliable as they do not deal with the issues on a day to day basis in the same way. Now, foreclosing and garnishment is not a quick process so I would not worry right away about garnishment but I would not sit back and do nothing. Speak with a lawyer about the possibility of a deed in lieu of foreclosure or a short sale of the land both with a waiver of deficiency. Good luck.
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