Will bank come after me if DH defaults on loan. . .

[SJM]

.

[HHM]

Isn't there a bigger picture issue here...if no one is making this payment, foreclosure is probably going to happen...is that your intent.

[SJM]

.

[danaf]

I don't have an answer to your question however - if there were even the slightest possibility of them targeting your account and you are walking away - I certainly would not keep that large amount in there. I'd take it all out and maybe keep $5 or whatever they require to keep an account open until you know for sure. Better to keep your $750 than to loose it just because you want to continue banking there, kwim?

[CindyLou]

If you are in a community property state, then yes, they can take money from your acct just like it was his.

[CindyLou]

see this thread for community property state info:

http://www.bkforum.com/showthread.php?p=161583#post161583

opps, I just noticed that you already know you are in a community property state. In that case they can come after you for the amount.

However after re-reading the original post, I think there are two things you should consider here. The first is that they may or may not remove the auto pay from the loan acct. Therefore, the only way to assure they won't (unless they confirm that they have stopped it) is to close the account.

As far as them putting a levy on the acct, which I originally though you were asking about, they can levy any acct in either of your names, but only if they get a judgement.

One other consideration is whether the bank where you have the loan is the same bank at which you have the acct. If they are the same bank then I would close it ASAP because somewhere in your loan it may have a cross coll. clause which means if you default they can take your money from your acct.

[lrprn]

The deal is I DO NOT want to close that checking account as I've had it for over 15 years...

Trust me when I say that if your bank has a chance to get money from you legally, they will not care you've banked with them for 15 years. Financial business is without emotion and without compassion. It's all about making a profit or reducing a loss.

Don't allow emotion or a misdirected sense of loyalty to make you vulnerable. Leave $5 in your old account and open a new one in another bank that's convenient to use.

We had our checking account for 20 years with our beloved local bank, but since we had our second mortgage and an overdraft account with that same bank that were included on our creditor list, about two months before we filed at the advice of our lawyer we opened a new account at another local excellent local bank. Best decision we ever made.

[SJM]

.

[creditwrench]

probably not

Thank you everyone.

What about my car? My loan is from the same bank (Wells Fargo, if that makes a difference). The resale value on the car is about $9-10,000 and I owe around 7,500-8,000.

Any chance they'll seize that as a means of collecting on the mort. debt?

Probably not. Here is why. The resale value on the car isn't anywhere near what you seem to think it is. You think in terms of resale value but what you need to think in terms of is the wholesale value which is about 1/3 of the resale value if that. So the real value is about 3k or so and that means you are way upside down on the vehicle.

So if they grab it they might be able to get 3K or so if they are lucky and really try to sell it at the max value they can. But they would not be likely to even care enough to do that. They want to sell it for whatever they can and as quickly as possible and then come after you for the deficiency balance and whatever else they can tack on. So if it were repoed by the bank and they sold it for say $3500 you would owe the difference of 5 grand plus costs of any cleanup or repairs they might do or say they did plus costs of sale plus costs of repo plus costs of transporting it to the sale plus interest on the new plus court costs plus attorney fees and more. By time they get it all said and done your new balance due, owed and collectable would be more like
$12 to $15K.

So they end up gaining nothing by repo and keeping you in the car will benefit them more money much quicker than taking it from you.