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March of 2009 I was foreclosed on and had to be out on Dec 19 2009. I figured that since I left the house as expected and the house did not sell at sheriff auction I was finished.

I am being asked to pay 36k to a collection agency. I do not know how this number was derived and second I assumed that since I could no longer afford the payments because of hardship I would be done. How do I get these guys off my back or am I really responsible for for the remainder of this debt on a house I no longer have control over? Do I file bankruptcy to get rid of this?

sabrinatoss · Posted: Wed Oct 12, 2011 8:56 pm Post subject:

Hi Norb,

A lien should be paid off prior to completing a sale of a property.
Once you have recorded a lien in the land records it ties up the title to the property. The owner cannot refinance or sell the property without paying off your lien. Sometimes you need to be patient and just wait. If the lien is for a substantial amount you can pursue your action to the next step, have the sheriff sieze the land and sell it. In that case it would be subject to any liens that were recorded before your lien such as a mortgage. Your state laws would govern that process.

Idea

jameshogg · Posted: Wed Oct 12, 2011 9:49 pm Post subject:

Hi Norb,

After a foreclosure, you will be liable for paying off the deficient balance resulting from the sale of the property. If you cannot pay it off, then you should inform the collection agency about the same and set up a payment plan with them which will make it easier for you to pay off the loan. If this does not work out, then you may file bankruptcy in order to get rid of the debt.

Thanks

Guest

Wasnt expecting a result this early in the morning. After the sheriff sale I am not sure what the process was other than I had 6 mths to rectify with the mortgage company. I could not so I left. What happened after so that the new owners could get it I am not sure. I do know from word of mouth that they bought the place for 5k and have since done a wonderful job rebuilding the place, including putting in a new foundation. I guess I dont understand why I would be pursued when they know I dont have nor did have at the time the means to make things right at the time I was in trouble. So I GAve up my right to that property. I have no control over how much they agreed to sell it for.

I will talk to a Michigan lawyer and see if I can get to the bottom of this.

helpfuljohn · Joined: 20 Oct 2011 Posts: 22 4.66 Dollars($)

The thing to remember is that foreclosure doesn't necessarily end your reponsibility.

At the end of the day when you take out a mortgage you are responsible to pay it back. If you can't then the lender may sell your house to trya nd recover the debt, and if they can't recover it all, then you are still on the hook for the balance.

In many cases a Deed in Lieu of Foreclosure is a better option for owners if the bank will agree as it DOES end your obligations, regardless of what the house sells for, or doesn't sell at all.

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