Can a bank seize accounts to pay a delinquent mortgage?
On One Hand: In Some StatesAccording to the Wall Street Journal, some states have laws that permit banks to seize the accounts of mortgage defaulters. These states, like Nevada and Florida, can also pursue collection of any other assets held by the defaulter, including other property or retirement accounts.On the Other: Contact the BankIf you live in a state where the bank can seize your assets when you fall behind, you can try to prevent it by contacting the lender after you receive your first notice of deliquency. Taking action against you is expensive, and most banks want to avoid it. Call them and see if you can work out a repayment plan that fits your budget.Bottom LineThe bank’s ability to take your accounts depends on the state in which you live. A lender holding a second mortgage can also take your money from your account, and even garnish your wages.
