Protect Your Finances During Difficult Times
What happens when your mortgage is with your primary bank? While you are making your mortgage payments on time, everything is fine. As soon as you start missing payments, however, your bank may act to protect its interests. Many people do not realize that if their mortgage lender is also their bank, it has the right to seize their accounts.
At Prescott & Pearson, P.A., we have seen people suffer from this situation numerous times. They are usually stunned that their bank was allowed to take money from their checking and/or savings accounts if they missed a mortgage payment. If you are having trouble paying your mortgage, speaking with a knowledgeable bankruptcy lawyer is a good idea. We can suggest ways to protect your home and finances during this time. Please call 651-968-8096 or 888-366-0827 to schedule a free consultation.
What Are the Consequences?
We often tell clients to beware of banking with an institution to which they owe money. If they default on a mortgage or other loan, or if they file bankruptcy, their bank may seize their accounts. It can happen without warning because of the bank's right of offset. This right allows banks to take money from a debtor's deposit account to cover a past-due loan payment.
If debtors do not have a deposit account with their mortgage lenders, the lenders must get a court order to seize money from bank accounts at other financial institutions. They have the right to seek the court order and pursue this action, however.
If you are facing foreclosure, bankruptcy or other financial difficulties, do not wait to seek assistance. The sooner you discuss your situation with an attorney, the more options you will have for debt relief.
Minneapolis Banking Lawyer · Minnesota Bank Account Attorney
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Minneapolis-St. Paul Area: 651-968-8096
Minnesota Toll-Free: 888-366-0827
Please call us at the numbers above or contact us online to schedule a consultation.