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Can they take money out of my bank account?

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sunnyAZ99874

Junior Member
I am in Arizona. To my knowledge this is a non-recourse state. I am currently going through a foreclosure. There will be a shortfall of $120,000 but I can no longer afford the house so I have to let it go.

A few months ago I did go to a real estate attorney for a consultation to determine what would happen if my house went into foreclosure. She read through all of my loan papers and advised me that the only remedy was for the bank to just take the house and auction it. Because of the state laws, the bank cannot go after me for the shortfall.

Today I tried to buy something at a store and my debit card was declined even though I have $900 in there. I called the bank and was able to find out that there some sort of hold on my account. I cannot determine the specifics, however, because the customer service deparmtent is closed. Of course they will be closed Monday because of President's day and no can give me a straight answer why my account is frozen.

The house will not be auctioned off for another 30 days. I have not made any payments for over 9 months. I guess I was stupid to leave money in that account, but I thought if they were going to try and freeze my accounts and take the money, they would have done so by now. At the moment I technically owe them $249,000 so not sure why they want my measly $900 bucks, that is not even one full mortgage payment.

Also, because the lawyer told me they cannot come after me, I thought I was safe. Can anyone tell me in Arizona can the bank take money out of my account to go towards an uncollectible debt?

And do I need to be worried about money I have in another bank --can they somehow get their hands on that money too?

This is a credit union, if that matters. thanks for reading.
 
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JETX

Senior Member
Can anyone tell me in Arizona can the bank take money out of my account to go towards an uncollectible debt?
Is your bank account at the same institution as your mortgage?? If so, then yes, the 'bank/lender' can offset their loss.

However, it is just as possible that your funds were frozen as a result of an outstanding judgment. Has a judgment been rendered against you by ANYONE??
 

sunnyAZ99874

Junior Member
Yes, the account is at the same credit union where my mortgage is held. No, I have no judgements and I don't owe anyone money.

Can you please tell me under what theory they can offset their loss by taking money from my account? Again, this is a non-recourse state and my lawyer assured me they couldn't sue me to recoup their losses. So if they cannot sure me, how can they bypass the court and just freeze my account?
 

Antigone*

Senior Member
Yes, the account is at the same credit union where my mortgage is held. No, I have no judgements and I don't owe anyone money.

Can you please tell me under what theory they can offset their loss by taking money from my account? Again, this is a non-recourse state and my lawyer assured me they couldn't sue me to recoup their losses. So if they cannot sure me, how can they bypass the court and just freeze my account?
Google the term "right of setoff." Yes the credit union can take whatever funds you have in your account. I suggest you getting a new bank and saying goodbye to the money in that account.
 

Antigone*

Senior Member
It would seem my lawyer did not advise me appropriately. The lesson has cost me $900. I am sick.
Look at it this way, you lived rent free for several months, it is only appropriate that you should have paid something.

The rest of us have to pay where we live, why not you:rolleyes:
 

sunnyAZ99874

Junior Member
I haven't been living rent free actually. I owned a house and so did my fiance when we decided to get married. Then we had two houses. Being upside down on both, we could not sell either property.

I moved out of my house and it has been sitting empty - while I continued to make the full payment for more than a year. Now I have lost my job and obviously cannot make an $1,800 mortgage payment on a house that doesn't even have anyone living in it.

And in case you're wondering, I did not get fired from my job. 200 people were laid off at the same time as me.

So please don't judge. My credit score was in the 800's before all this happened. I have never bounced a check in my life, and I have never borrowed money that I didn't repay in full. I am not some low-life trying to take advantage of the system.
 
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