Can my credit union take money from a joint account savings if I am in foreclosure with credit union? 5 Answers as of May 24, 2013

I have a home in foreclosure at my credit union. The CU initiated the cross-collateralization clause and right to set off clause and repossessed my vehicle that was on another loan with them. Do they have the right to seize any money in a joint checking/savings account at a separate bank? Can they repo my wife's vehicle that I am joint with at the bank?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
No, they cant touch different bank accounts and they generally will not repo a car if payments are being made.
Answer Applies to: New York
Replied: 5/24/2013
Stacy Joel Safion, Esq.
Stacy Joel Safion, Esq. | Stacy Joel Safion
They cannot seize assets at another bank.
Answer Applies to: California
Replied: 5/23/2013
Janke Legal Consulting | Bruce C. Janke
I just today read a case holding that a lender waives its right to nonjudicial foreclosure by setting off funds taken from a deposit account against the loan balance. However, that would not apply where there is an express cross-collateralization agreement that permits the set off. But as long as the account is at a different bank, your bank cannot take money from it without first getting a money judgment against you and a writ of execution. Whether the bank can repossess your wife's vehicle depends on the terms of your cross-collateralization agreement. Was the loan on your wife's car taken out after the mortgage? If so, does the cross-collateralization agreement specify that security for the home loan will include after-acquired property?
Answer Applies to: California
Replied: 5/23/2013
Gallagher & Associates Law Firm, P.A.
Gallagher & Associates Law Firm, P.A. | Charles R. Gallagher III
You said the magic word, cross collateral agreement. Yes your credit union can take money from your account or seize your car.
Answer Applies to: Florida
Replied: 5/22/2013
Frank Law Group, P.C.
Frank Law Group, P.C. | David E. Frank
In Ca. the CU may be in violation of the "one-action" rule, which severely limits the lender's remedies with respect to real estate loans. You should seek immediate representation by an attorney who regularly practices in the area of CA real estate foreclosure law. A one-hour consult will you between $300 - $500.
Answer Applies to: California
Replied: 5/22/2013
Click to View More Answers: