baroja
Guest
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 Posted: Thu Apr 16, 2009 8:20 pm Post subject: My wifes house - contemplating deed in lieu or foreclosure |
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My wife bought her first house 2.5 years ago for 330K with 80/20 without any down and the rate was %7, principal and interest and taxes are 3K a amount. The house is located in michigan, Troy
She relocated to Arkansas for work. and now she is renting.
the value of the house is 230K now (the most recent appraisal). She can not refi it even with all these goverment programs out there...
It is not that she can continue paying for the mortagage, but she does not live there anymore and the value perpetually heading south with no light at the end of the tunnel..
If she chooses to foreclose, what will happen to her..
In michigan, is there deficiency judgment law?
Can the b ank come after her? I am hearing from my mortagage broker that bank stopped going after people .. is t h at true..
I am confused as to what my wife needs to do .. all credible feedback is appreaciated.
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 sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.11 Dollars($)
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| Posted: Fri Apr 17, 2009 1:45 am Post subject: |
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Hi baroja,
As far as I know, in Michigan lenders can sue the borrowers for the deficiency amount resulting from the sale of the property. If you cannot pay the deficient amount, then the lender may garnish wages.
As she is not staying in the property, she may apply for a deed in lieu of foreclosure. This will help her to sell off the property and she will not be responsible for the deficient amount. However, her credit will take a hit and it will be lowered by around 250 points.
Take Care. |
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