Posted on: 10th Mar, 2008 04:55 pm
Are lenders still able to obtain a deficiency judgement after sheriff sales on foreclosed homes in Michigan? It is very confusing. Before they issued a 1099c for your forgiven amount. However, I understand that these 1099c are not being issued any longer. Does this mean that deficiency judgment is assumed? Also, does Michigan have anti-deficiency laws? If the mortgage is for the purchase of a dwelling occupied by the purchaser, is the purchaser not responsible for any deficiency?
will the court send me a deficiency judgement ? there is a servicing company that has been hounding me even before the house was sold..the amount was $195,000.00 but the bank discounted 145,000.00, does this make a difference? does it mean that I have to pay the servicing agency,147,000.00$
Hi leaxa,
The lender can come after you for the deficient balance resulting from the sale of the property. It will be the lender's discretion whether or not he will forgive the deficient balance resulting from the sale of the property.
Thanks,
Jerry
The lender can come after you for the deficient balance resulting from the sale of the property. It will be the lender's discretion whether or not he will forgive the deficient balance resulting from the sale of the property.
Thanks,
Jerry
My mortgage statements come in my name only and I thought I was the only one on the mortgage note but notice my husband's name was put on the mortgage documents because I am married. I'm thinking short sale or foreclosure. I've been told that lender cannot touch my qualifying retirement income. Because I am unemployed do they have to waive the deficiency because I have not way to pay it off. I have no liquid savings. I have been told they cannot come after by husband in any way. In what situations would I have to pay taxes? If they put a lien on my savings account, how long would that apply? I'm 59 now. When I'm 62 or 66 I plan to start collecting S.S. Is there a statute of limitations.
Hi Carol!
Welcome to forums!
It is not mandatory for the lender to waive off the deficiency though you're unemployed. The lender can come after you for recovering the deficient balance. If the lender forgives the deficient balance, then you may be liable for paying the taxes on the forgiven debt.
Sussane
Welcome to forums!
It is not mandatory for the lender to waive off the deficiency though you're unemployed. The lender can come after you for recovering the deficient balance. If the lender forgives the deficient balance, then you may be liable for paying the taxes on the forgiven debt.
Sussane
i recently received a letter saying my mortage was charged off,and that my mortage has a 0 balance.they will not be atempting to collect any funds.who will be coming after me at this time? how can i find out? and what options do i have
Hi Guest!
Welcome to forums!
As the lender has charged off the debt, he won't be able to come after you in order to recover the monies. However, the collection agency to whom the debts has been assigned will come after you in order to recover the debts. You can negotiate with your lender and ask them to withdraw the account from collections. Then you can directly negotiate with the lender and try to get a repayment pan in order to pay off the debt in an affordable manner.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As the lender has charged off the debt, he won't be able to come after you in order to recover the monies. However, the collection agency to whom the debts has been assigned will come after you in order to recover the debts. You can negotiate with your lender and ask them to withdraw the account from collections. Then you can directly negotiate with the lender and try to get a repayment pan in order to pay off the debt in an affordable manner.
Feel free to ask if you've further queries.
Sussane
Once the mortgage company sues you, what is the process after that and time it takes before they actually foreclose (in Michigan)?
Hi Guest!
Welcome to forums!
It might take around 90 days to complete the foreclosure process in full. However, this time limit may vary from one lender to another.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It might take around 90 days to complete the foreclosure process in full. However, this time limit may vary from one lender to another.
Feel free to ask if you've further queries.
Sussane
My house was foreclosed on 3 years ago. I had 2 mortgages. I thought the foreclosure took care of the balance owed. I know have a collection ageny calling me relentlessly telling me that I owe them money for the deficiency. It's for $14k, which I don't have, nor do I understand how they came up with that number. How do I know if this collection agency is legit? Do I work with them to make good or contact an attorney???
Welcome saxconcerned,
The foreclosure won't take care of the delinquent balance resulting from the sale of the property. The lender has the rights to collect the debts from you. As you haven't paid the dues, the lender had sold off the account to a collection agency who are now contacting you for the debts. You can negotiate with the collection agency so that they can get a better payment plan to pay off the debts.
The foreclosure won't take care of the delinquent balance resulting from the sale of the property. The lender has the rights to collect the debts from you. As you haven't paid the dues, the lender had sold off the account to a collection agency who are now contacting you for the debts. You can negotiate with the collection agency so that they can get a better payment plan to pay off the debts.
My wife and I are currently in a VA backed home that is underwater by about 60K. I am planning retirement in Dec. 2012 and have been in the works of buying our retirement home, which will be financed through another bank through a conventional mortage with 20% down. and am only awaiting for a closing date. We are makiing this move now before the forclosure begins on our current home because our inability to afford it after retirement. My question is, Since the home we are now in is a VA loan, does the lender or the VA purchase the home at the auction and can the lender seek a deficiency against me after the VA assumes the home and it becomes a HUD home for resale purposes
hi guest!
welcome to forums!
if the property is foreclosed by the lender, he has the rights to come after you in order to recover the deficient amount from you. moreover, as you're underwater, i don't think you will be able to refinance your mortgage in any way.
feel free to ask if you've further queries.
sussane
welcome to forums!
if the property is foreclosed by the lender, he has the rights to come after you in order to recover the deficient amount from you. moreover, as you're underwater, i don't think you will be able to refinance your mortgage in any way.
feel free to ask if you've further queries.
sussane
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.
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.
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.