[petercooper]

Don’t borrow money you cannot pay back. Simple.

[driftdiver]

Curious as to how the lenders do this without court action being noticed by the borrower.

[SnakeDoctor]

A creditor (except the IRS and student loans) cannot garnish wages or seize bank accounts unless they’ve already sued you and won. Even then, you can bankrupt out of the judgment or settle the judgment before a judgment levy/lien is taken.

This likely is stemming from defaults on second mortgages that are years old (the court process alone can take a year). People being garnished have had likely had ample opportunity to come to another arrangement.

SnakeDoc

[George from New England]

This sounds like a story fueled by attorneys in an attempt to scare homeowners. Very slanted to bash lenders and blame individuals for not hiring a lawyer to oversee and take a big $$$ chunk out too.

[bert]

......homeowners say they learned.....

They lie, looking for sympathy.

What really happened is they ignored a summons and thought it went away. Meanwhile a judgement was entered.

[FromLori]

Better those who borrowed it then us who get stuck otherwise paying for it...

Related

Of course, the government’s potential losses extend beyond the Treasury program. The Federal Reserve, for example, still holds a trillion-dollar portfolio of mortgage-backed securities whose market value is unknown.

http://www.nytimes.com/2009/12/07/business/07tarp.html

AND

Millions More Are At Risk Of Foreclosure Than Anyone Realizes

http://www.businessinsider.com/millions-more-are-at-risk-of-foreclosure-than-anyone-realizes-2009-12

[from occupied ga]

The couple bought the home for $520,000 early in 2006 with an adjustable rate subprime loan from IndyMac bank, which was shut by the government last year. Less than a year later, they said, they refinanced to lower their interest rate and took out $20,000 to pay off credit card debt.

As part of the refinancing, they took out a mortgage in the amount of $464,000 from HSBC bank with an interest rate of 6.8 percent, and a simultaneous second loan from Citimortgage for $126,000. The latter loan came with an interest rate of 9.5 percent. In all the refinancings, the couple never used an attorney.

They also financed lifestyle with debt. House = $520k loans = $464k + $126k = $590k. Paid off $20k in cred car, so $590k - $520k = $70K that they mined out of the house. - $20k to pay off the cred card leaves $50k of cash that they apparently spent on things that they couldn't afford. Sympathy meter for these irresponsible morons = 0. Screw 'em. They deserve to get kicked out for stupidity.

[JenB987]

Does no one use cash anymore?

We bought a home we could afford...$60,000 total after closing costs, taxes and other fees. Fixed interest rate of 6% because we managed our credit well. We use cash to fix the house. If we didn’t have the cash, it didn’t get remodeled. When we come into a little extra funds, half goes in the savings, half is for remodeling part of the house. We understood we couldn’t have everything we wanted at 21 and 26 years old. Now, at 24 and 29, we just refinanced the remainder $47,000 last year at 4.75% fixed. Our mortgage payment is less than many people pay for rent for a one bedroom apartment.

It’s not hard to manage your life if you don’t think you deserve everything on a silver platter.