 TITLE: What Happens If I Don’t Pay a Deficiency Balance? CONTENT: What Options Do You Have When You Owe a Deficiency Balance?\n-----------------------------------------------------------\nEven if you voluntarily turn over your property, you may have to pay a deficiency balance. If you refuse to pay, the debt will most likely be sold to collections. But either the lender or the collector can choose to file a lawsuit against you, which could result in a wage garnishment, a levy against your bank account or a lien against your other property.\nThe safest course of action is to pay the full remaining balance owed. If you can't afford the amount due, make sure to communicate that to the lender immediately. You may be able to negotiate a settlement or an affordable payment plan to avoid being sued.\nThere are a few circumstances in which you may not have to pay a deficiency balance. In some states, the law doesn't allow lenders to collect the deficiency balance if you voluntarily surrender your home. You may even be able to get your lender to waive the balance as a part of your agreement to let go of your house.\nSome people who are sued for a deficiency balance may have a legal defense against paying. If you live solely off of federal benefits or simply have no way to afford repayment, a wage garnishment may not be allowed. You can also defend against judgment if you can prove that the lender didn't make an effort to sell your property for fair market value. END