A man in Florida a few years back, stopped making payments on his home and was foreclosed on. When John King stopped making payments he assumed that was the end of that, but recently he now has collectors after him for $44,000 stemming from the default. Unbeknownst to King when a person is foreclosed on, lenders still have the right to collect their money, lenders can collect by taking wages, tapping bank accounts, and placing liens on other assets help by the debtor. In Florida mortgage holders are permitted to seek a deficiency judgement within five years and, if granted, allowed 20 years to collect. This past year mortgage rose to $1.01 billion in the first nine months. During the last quarter of 2009 4.5% of mortgaged houses were foreclosing, this number is the highest in 37 years. Obama is working to rectify and make foreclosures less likely to happen with his Home Affordable Modification Program. This program would cut a person's monthly payment to one-third their income.
Posted by Colleen Lane
on
A man in Florida a few years back, stopped making payments on his home and was foreclosed on. When John King stopped making payments he assumed that was the end of that, but recently he now has collectors after him for $44,000 stemming from the default. Unbeknownst to King when a person is foreclosed on, lenders still have the right to collect their money, lenders can collect by taking wages, tapping bank accounts, and placing liens on other assets help by the debtor. In Florida mortgage holders are permitted to seek a deficiency judgement within five years and, if granted, allowed 20 years to collect. This past year mortgage rose to $1.01 billion in the first nine months. During the last quarter of 2009 4.5% of mortgaged houses were foreclosing, this number is the highest in 37 years. Obama is working to rectify and make foreclosures less likely to happen with his Home Affordable Modification Program. This program would cut a person's monthly payment to one-third their income.
Posted by Colleen Lane
on
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