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Unless you take home less than $217.50, wage garnishment is based on gross pay, not take-home pay. Therefore, putting more money in a 401K would not decrease the amount that can be taken in a garnishment. Nice try, though!
Mortgage companies are pretty much set in their procedures, and will not make exceptions to their rules. Most of the mortgage companies require at least a few months of non-payments before they will consider a deed-in-lieu. In other words, unfortunately, there is nothing you can do to speed up the process.
There are 2 types of foreclosure: 1) judicial, and 2) non-judicial. The judicial foreclosure takes place in court, and the non-judicial foreclosure takes place outside of court.
Either way, the lender must go to court to get a deficiency judgment after the sale, for the difference between what the house is sold for, and the balance on the mortgage. If you owe $100K, and house sells for $60K, and the $60K is a reasonable price for the house, the lender can get a judgment for $40K.
I don't know of anyone who has paid back a deficiency judgment. Most file a Bankruptcy to get rid of it.
Yes - if you file a Chapter 13, that is exactly what happens - you make monthly payments for 5 years. The monthly payments are based on your disposable income - your gross pay minus allowable expenses. After 5 years, the rest of the mortgage balance will be discharged.
If you file any Bankruptcy, all your credit cards must be included.
You would have to subtract the other expenses - lunch, groceries, gas, etc. from the $5200 - in addition to subtracting the $3236 - to arrive at the amount you would have to pay.
So if you pay $1000 per month for food and gas, your monthly payment would be about $964.
If your income goes down, you can get a downward modification of the payment at any time.
You will also have to submit a copy of your tax return every year, and if your income has gone up, the trustee can adjust your payment upward.
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