can 2nd mortgage creditor garnish wages when 1st mortgage was forclosed?

[Marysbutterfly]

I currently live in WI but bought a condo in OH 7yrs ago with FHA loan. I lived in this condo and made my payments for a little over a year then unexpectedly moved to WI. I was offered a 2nd mortgage on condo with a company I had a personal loan thru. They where aware I was moving & putting it on the market. The branch manager told me not to worry, it will sell with no problems and I could pay both loans off with a little extra. I now know that I signed a contract that I did not fully understand, but regardless I am responsible for it. Needless to say the condo did not sell. I had it on the market for over a year, and during that time I paid the first mortgage, condo assoc. fees, 2nd mortgage AND rent in WI. I did this for my first year here in WI this in good faith that it would eventually sell. It got to the point I could no longer afford it all. I defaulted on the first mortgage and the bank took it back. I worked with the 2nd mortgage company the whole time, and they reduced the payment amount for me to keep current but now cannot afford them either. Been paying nothing on the principal for about 3yrs now! I offered them a third of amount due to settle and they refused. They are telling me they will garnish my wages if I do not pay?? I do not see this anywhere in my contract. What are the legal repercussions if I refuse to pay them on a mortgage that the first mortgage comp. repossessed collateral on? Does the fact that the property is is OH and I now live and work in WI make any difference?

 

[army judge]

I don't know what your contract or note says, but usually your wages aren't attached when a home is foreclosed.

You might want to consider filing bankruptcy if their threats concern you.

That would eliminate your debts and forestall any wage attachments.

You could consult with an attorney in the jurisdiction in question.

BK is the best solution from what you describe.

 

[jharris352]

The second mortgage normally only has 30 days after the foreclosure to register the deficiency with the Office of Records and deeds. They have NOTHING! They are trying to scare you. The only way they can garnish your wages is with a judgment. Stop talking to them. If they sue you come back and we'll give you more advice!