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How does deficiency judgement work in Michigan?

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LJ Guest	Posted: Thu Feb 09, 2012 9:19 am    Post subject: mortgage, deficiency judgement, and divorce judgement Like 0 Dislike 0 Mjohnbaur, if your wife's name is not on the mortgage, she has no obligation to the mortgage company. A divorce judgment cannot change laws nor change contractual legal responsibility. The most the divorce judgement can do is offset the deficiency the judge has determined your wife is equally responsible for with assets they have allocated to her. They cannot grant a debtor legal authority to collect on the deficiency debt for which your wife was never a party to. So in other words, the Judge can hold back any joint assets which he would have awarded your wife to counter-balance the deficiency debt he is assessing her but he cannot grant legal authority to the third-party creditor to collect on a debt for which your wife was not previously a party to. A divorce judge does not have the authority to change a contract made between two parties. He cannot grant the creditor legal authority to collect from a party not previously involved in the contract just as he cannot force the creditor to release a party from liability in the contract. You often hear how a divorce judge holds one party responsible for a joint debt in the divorce judgement but the creditor continues to attempt collection form both parties. A creditor has the legal right to collect from whichever parties they formed the contract with and only those parties. No outside party or judge can change the liability status. A judge's duties are to enforce laws and contracts as they are written, not to change them. A divorce judge cannot add a party onto a debt just as they cannot take them off a debt to a third party. Any divorce judgement that does so is no enforceable. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
tired Guest	Posted: Sat Mar 31, 2012 8:30 am    Post subject: redeem Like 0 Dislike 0 My house foreclosed and was sold at a sheriff sale. the deed its on my name &my husband name but loan on my husband name...but he passed away few months ago ...If I can come up with the amount to redeem my home, can I still be sued for the deficiency of the original mortgage, iam im michigan
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Mon Apr 02, 2012 1:06 am    Post subject: Like 0 Dislike 0 Hi Guest, If the loan is in your husband's name, the foreclosure won't have a negative affect on your credit report and the lender won't be able to come after you in order to recover the deficient balance. If you pay off the delinquent amount to the lender, you may be able to save the property from foreclosure. Thanks

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