Can my home be foreclosed while i'm on workmans compensation benefits?

Asked about 2 years ago - Alpine, WY

i've been on workers comp since 2010. i have fallen behind alot on house payments due to the decrease of wages. i've sent in all loan modification papers and have been denied. i'm a single mom with two kids and the sale date is for june 26 2012

Attorney answers (4)

  1. Wesley M. Lawrence

    Contributor Level 8

    2

    Lawyers agree

    Answered . In my state, Vermont, for example, there is no prohibition on a bank foreclosing against a borrower collecting workers' compensation. It is a common worrry for claimants, especially when a claim is denied.

    Other than working with your lender, perhaps it may be possible to receive an advance of weekly benefits, i.e. permanency benefits, in a lump sum or you may consider settling the indemnity/non-medical portion of your claim if it is reasonable to do so.

    I am offering this response for informational purposes and only as a service to the Bar. While I hope this is... more
  2. Charles Joseph Michael Candiano

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . The simple answer is yes. This prompts many people to borrow money if the claim cannot be settled. There are lenders who will lend you money with your case as collateral such as Preferred Capital Lending. I never recommend borrowing because the interest is very high but it should be considered if you are losing your home.

    In most cases, your WC TTD should not be that much different from you take-home pay. You should consult a WC attorney to make sure your benefits are being paid correctly.

    If this information has been helpful, please indicate by clicking the up icon. Legal Disclaimer: Mr.... more
  3. Brett A. Borah

    Contributor Level 20

    Answered . yes. there is nothing in the law that grants immunity because you have a w.c. case open.

  4. Bruce Martin Broyles

    Contributor Level 9

    Answered . Yes. Workman's compensation does not prevent or preclude a foreclosure complaint. You can file a motion to stay the foreclosure based upon the pending loan modification application. The HAMP guidelines provide that a Sheriff's sale should not go forward so long as a HAMP loan modification has been pending at least 7 days prior to the sale date.

    Every legal situation is unique and foreclosure defense involves a major asset, You should consult an attorney... more

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