I have offered the deed in lieu of foreclosure for my vacated property in Las Vegas. I have submitted all the information that was requested. The appraisal came back for less than the balance of the loan. My request was denied citing that the title is clouded and that I have not returned the requested documents in a timely manner.
Good evening. At this stage, if the bank won't respond, simply let the lender waste its time and money to proceed with a foreclosure. Since you have already vacated, it really doesn't impact you and there is nothing you can do to force the bank to accept the deed in lieu.
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When the lender proceeds with a foreclosure, since I am no longer paying the monthly mortgage, what action can they take against me to rectify the indebtedness?
Nevada, unfortunately, is a deficiencystate...which means the lender can pursue the borrower for the deficiency...theamount owed over the amount of the foreclosure sale. Whether or not they willdepends upon their assessment of the collectibility of a deficiency judgment.So, if the borrower can convince them there is nothing for them to get, andthat if they were to pursue a judgment, the borrower would simply file forbankruptcy protection and get the judgment discharged-and even if the borrowerhas no intention of doing so, it is still good leverage with the bank becausethey do not know whether the borrower will not do so--- then it is unlikely thelender will spend the time and money necessary to get a judgment they believeis uncollectible in the end.
Could the lender put a lien against a new primary resident or garnish my retirement payments to satisfy a bankruptcy deficiency?
Your retirement accounts and retirement income are exempt and cannot be touched. Nevada also has a very generous homestead exemption....equity (i.e., value in excess of mortgage) of your new homestead residence is protected up to $550,000.
What about Savings accounts, Social Security disability and VA disability? Can they be garnished to satisfy a bankruptcy deficiency?
Sorry for the delay...went to bed....
Savings accounts would be at risk unless in retirement accounts; SS disability and VA disability are both exempt and cannot be touched.
With the 5 hour time difference figured you went to bed. How about checking accounts and joint educational savings accounts for my child's education? Lastly, what about a account set up with a brokerage firm for investing in the stock market? Are these accounts at risk for satisfying a bankruptcy deficiency? If so, is there any way to protect them since I am unable to work and replace these monies because of my disabilities?
All those except possibly the educational account...which I don't know....would be at risk.
In this situation, a person might want to consider putting theirinterest in the home and other non-exempt assets (retirement income andretirement account assets are exempt and can be left in place) to a familylimited partnership. Carefully drafted, this converts assets that a creditorwould find attractive to go after into a limited partnership interest with nocontrol, no rights other than that of an assignment, no transferability, nomarketability, and no right to distributions. Essentially, it is an asset noone wants and thus the creditor is less likely to pursue the debtor. Family limited partnerships must be carefullydrafted and one would need an attorney experience in this area to do so, butthey can be a very effective method of asset protection.
Any way to get an answer on the Joint educational account being at risk?
That's outside the scope of what I know...I'm sorry.
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