What happens after lenders get judgment?
Your lender has the right to collect on a deficiency judgment for up to 20 years. Interest accrues until it is paid in full. Although most lenders don’t expect a borrower to pay the deficiency judgment amount, they have the means to pursue a borrower through:
- Bank account levy
- Wage garnishment
- Property liens on other property you own
Some assets are exempt from judgments such as 401K, IRA, retirement accounts, social security income, unemployment benefits, and workers compensation.
A deficiency judgment will show up on your credit report affecting your score adversely. If a borrower is insolvent and unable to pay a deficiency judgment, the only way to get rid of a deficiency judgment is to negotiate a settlement for a lesser amount or expunge it in a Chapter 7 bankruptcy.
If you need are in danger of foreclosing on your home, please contact us.