Foreclosure in sight? Lenders can legally collect from you afterwards

Lenders who have had to take back a home, do have the right to try and collect defaulted funds from the people taking out that loan. Recently, a Florida man found that even after his foreclosure was completed, he was being pursued by collectors for tens of thousands of dollars! Lenders are able collect through several means, i.e., wages, bank accounts, and setting liens of on other assets. In this case, Florida laws permit mortage holders are allowed to obtain a judgment within 5 years of the foreclosure and have up to 20 years to collect on it.

Pres. Obama hopes to make foreclosures a thing of the past by presenting the Home Affordable Modification Program, thus cutting a mortgagee’s payment to 1/3 of the household income.

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