A bank can freeze all bank accounts usually as a result of suspicious activity reports that involves money laundering and the like. However, if this is as a result of a defaulted mortgage, then you know the mortgage was defaulted way before any court action. The natural progression is notification of your late payments, then a foreclosure action (after other efforts have been exhausted), then an eviction notice, an eviction, and then if a deficiency judgment requires repayment, the mortgage company, servicer or collection agency will go through the proper route to obtain the judgment. The judgment will usually include a repayment plan and if that sours, then garnishment, freezing accounts and liens are usually the method to obtain those monies.