I feared this for a long time. But today I found out that it is actually happening. Here’s the story. Someone is short selling a house. The mortgage is with ABC Bank. They happen to have their checking account at ABC Bank.
They stop paying on their mortgage. They thought their checking account was safe because it is a different account. Then one day their debit card stops working. “Hmm this is weird. I know I have money in this account. It should be working”, they think to themselves.
They go check their bank account balance and find out it has been sucked dry. Their lender levied their bank account to pay the mortgage that month. their lender levied their mortgage that month. The sad thing is that most people in this situation are close to broke. Having their last bit of savings wiped out is devastating.
Now they don’t even have enough money for gas to get to work. Here is how to avoid having this happen to you. If you get behind on any type of loan, then make sure your checking and or savings accounts are with a separate entity.
If you are behind on a car payment, then move your account elsewhere. You want to make sure that your bank is not owned by the same institution. For example, Wells Fargo purchased Wachovia.
JP Morgan Chase purchased Washington Mutual. Bank of America purchased Countrywide. Now, some people think this doesn’t matter because these lenders are so bit. “Bank of America is huge! They will never notice that I have my checking account with the. They tell me.
Yes, this is true. They might not notice. Or, I’ve had people make the argument that they aren’t allowed to levy a bank account. Yes, that might be true as well. But do you have time to read thru the 20 pages of fine print for when you first opened your checking account? I’m not a lawyer and I would never try to go thru all that. It’s much simpler to simply move your account.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.
Thanks for reading this and if you or anyone you know is in need of real estate advice, please do not hesitate to contact me. When we talk, I will explain how the process works in detail and answer any questions you may have.
Donna Bishop Realtor call me (239) 560-3149 or email me : firstname.lastname@example.org