tricky lenders using info to garnish wages?
maybe i'm just paranoid but i'm working on my first short sale and the lender has asked for pay stubs. the h/o has good pay but can't pay for the home anymore due to medical bills and the fact that their home debt is so huge compared to the home value (incredibly upside down in other words). anyway, my worry is -- is there a chance the the loan company would use the paycheck stubs to garnish the h/owners wages at sometime in the future or even now?? i just dont want anything i do to get them into more trouble. i have asked in my cover letter for them to waive any deficiency judgement, but i know these cos. are slick and are always warning you about how info you provide could be used to collect a debt, so i just want to make sure i am not supplying anything that the bank could use to get money out of the h/o now or later.
btw, is there anything that i should not ever give to the bank?? anything that would hurt the homeowner down the road? just checking.
thanks for your help. dont know what i'd do if i could not ask these questions here!
Sewa- never give lienable assets to the lender that they can go after later. As for the Def Judgment, if not waived, the bank can go after the judgment and if awarded can try to garnish wages, etc. That would only be if they do not waive and if they pursue the judgment and record it and then pursue. I can't promise you that this would never happen, but it usually does not go that far. If it were my short sale, I would simply spell out the debts against the income, so the hardship is clear in order to get the short sale and also the waiver. Good luck, Sharon