If my home is in foreclosure, can the bank take money from my bank account?
Well, the bank cannot, unless you bank with the same lending institution where you have your mortgage. So if you have a bank account with Bank of America, and you also have your mortgage or line of credit with Bank of America and you go in default, they may exercise the right of offset to take money out of your account.
If, however, you have your mortgage with Bank of America, and you have your bank account with any other financial institution, Bank of America has no right to attach any of your assets or your bank account whenever you go into foreclosure.
A foreclosure action is one wherein the lender is taking back their collateral, which is called a foreclosure. They are not suing for a money judgment.
In order for them to obtain a money judgment, they must file a supplemental proceeding after the foreclosure action. That’s called a “deficiency judgment action.” And then, if they do obtain a deficiency judgment, they’re then in position to garnish your bank account, or take your bank account or any other assets other than your home or other assets that you may own as husband and wife.
So the answer to the question is: No, the bank cannot take your money or your assets just because they file a mortgage foreclosure action unless you’re banking with them and they may have some right of offset.
If you’d like to talk to me or set up an appointment to discuss foreclosure action, please call me at (727) 847-2288, and I look forward to seeing you.