Can they garnish my wages in Oregon if I foreclosed on two homes in California?
Sorry for your misfortune, but you did not foreclose on your properties. The bank did. You didn’t act; the bank did. As for the outcomes, see a lawyer. Your primary risk is being responsible for the deficiency judgment. The lenders may send you a 1099 form showing that you received “income” from them. That “income” is the deficiency, or the difference between what you owed and what the lender could recover. Those forms are also sent to the IRS. In that case, you have to declare the “income” on your tax return, and pay taxes on it. If you don’t, then you’re in big trouble with the IRS. Example: You owe $600,000 on a house. The bank forecloses and later (auction, resale, etc.) receives $350,000 for it. You receive a 1099 showing $250,000 worth of income. Depending on your tax bracket, that means you’d owe the IRS somewhere between $50,000 and $75,000. Then, if you don’t pay the IRS, they can come after you and garnish your wages.