Confiscating Collateral

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Question:

When a bank holds security on a loan, such as vehicles, are they allowed, after filing a judgment against the borrower, to confiscate other personal items at the borrower's home? These items were not listed as collateral on the above mentioned loan.

Answer:

This is a legal question and should be directed to the bank's attorney who in turn should be familiar with state laws. However, I would opine that you would not be able to confiscate personal property. A judgment normally gives you an interest in real property and gives you the right to file a garnishment against bank accounts or wages, but I have never seen one that allows you to confiscate personal property.

First published on BankersOnline.com 9/13/10