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John Legal
John Legal, Attorney
Category: Legal
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Experience:  Over 15 years legal experience.
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My mother is 86 years old. She moved out of her home almost

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My mother is 86 years old. She moved out of her home almost 1 year ago and proceedings were begun with her mortgage co. for a deed in lieu of foreclosure. The process is still not completed and she is now recieving notice of delinquent property taxes from the county tax entity. she is dependent on social security and has less that $10,000 in the bank from a life insurance policy from dad dying a couple of years ago. Can a levy be placed on her bank account for these taxes?
Welcome! Thank you for your question.

Unfortunately yes they can levy on her bank account. They can only levy on the account after a They cannot garnish her social security. This is actually a tactic that mortgage companies have used over the last several years. They started foreclosure but delayed the sale to keep them from being the owner and avoid paying expenses related to the property like taxes, HOA fees, etc.

You mother likely qualifies for legal aid services in her area. They are very knowledgeable of these tactics and have methods to force the bank for either complete the Deed in lieu or complete the foreclosure.

I cannot provide you with legal advise. I have provided you with information about the law related to your question. My answer, and any information that you find online, should not take the place of having a consultation with a lawyer in your area to advise you regarding your specific issues.

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Customer: replied 3 years ago.

So they cannot garnish the SS check but they can "levy" her account with the SS already direct deposited in it correct? Can she/we/I just open a seperate account in my name and and place her remaining small life insurance funds in that account, leaving the original account for the SS direct deposit only?

Yes, they can levy the bank account after the SS was deposited. There has been some success at protecting bank accounts if you can show that it contains only SS funds.

However, transferring the life insurance money from her name to yours is called a fraudulent conveyance that they can easily require to be returned to her name. She would be better off in having the life insurance proceeds in a separate account in her own name. Essentially 2 accounts: One with Social Security only and one with the life insurance proceeds.
Customer: replied 3 years ago.

So in otherwords if 2 seperate accounts are established, 1 with SS check and 2nd with life insurance funds, they would be more likely to go after the one with the life insurance and not SS?

That is correct.
Customer: replied 3 years ago.

I am her son and legal power of atty. I am a co-signer on the account. Do you still feel it would be a fraudulent conveyance if I withdrew all but the SS direct deposits. I will also contact legal aid services in the county as well, but are you aware of any other way out of this mess.

She is a very old woman and will not be re-occupying the home, ever. If she spends what little she has in savings on the taxes she will basically not have enough to live on with just her SS income.

And i thank you very much for your time and patience.

It would certainly be a fraudulent conveyance if you moved money into an account in your own name. Even if you do it, they will easily be able to go after it due to the fraudulent conveyance statutes.

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