Irvine, CA asked in Foreclosure and Real Estate Law for Tennessee

Q: Parents defaulted on mortgage in TN. Bank now wants to sue them for different of short-sale, they have no money to give.

My parents let a TN property go since they cannot afford it anymore. The bank is threatening to sue them if they do not pay the difference from a cash offer they have for a short sale. My parents have no money anymore to pay this.

The other options was to pay them monthly for the next 10 years or they'll garnish their wages.

My dad is the only income, and will retire in about 3-4 years time.

No savings, only 401k.

Best course of action?

Let them sue and garnish? Or try to work it out with them?

We have sent their financial details to the bank to show they do not have any money for this, but the bank is still threatening.

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2 Lawyer Answers
Anthony M. Avery
Anthony M. Avery
PREMIUM
Answered
  • Knoxville, TN
  • Licensed in Tennessee

A: You should not have sent them any further financial and asset information. The Bank will sue them for the Note Deficiency, which will include alot of penalties and attorney fees. After the Bank gets a Judgment, it will use the information to execute on your Parents' assets. They should start protecting their assets now, and possibly hire a competent attorney to advise them about collection methods and exemption rights.

1 user found this answer helpful

Leonard Robert Grefseng
Leonard Robert Grefseng
Answered
  • Columbia, TN
  • Licensed in Tennessee

A: Consult a bankruptcy attorney. If that is not acceptable, they have the right to have the JUDGE ( not the Bank) set a reasonable monthly payment. This is called a "slow pay motion " or "time payment motion."

It does not happen automatically, but they have to make a written request for it after the Judgment is filed. The slow pay order stops the garnishment as long as your parents make the required monthly payment. I also agree with the previous answer- do not share any asset information with the lander.

1 user found this answer helpful

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