---

Foreclosure, redemption, bankruptcy and land contract situation

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
sbutler210shield Joined: 21 Aug 2010 Posts: 2 1.00 Dollars($)	Posted: Sat Aug 21, 2010 3:55 am    Post subject: Foreclosure, redemption, bankruptcy and land contract situat Like 0 Dislike 0 One of my siblings has had his home sold at Sheriff's Auction. The buyer is an independent investor who has offered my sibling to stay in the house at no charge for 6 months and then enter a Land Contract for 3 years, no money down at $250 per month. Immediately, this sounded too good to be true (original home has 2 mortgages, a junior and senior with total approximately $114K in State of Michigan). My sibling has a significant other and 2 children with that person. The grandmother of the significant other is willing to loan them $25K to pay off the person who bought the home (which I believe would be paying the redemption amount potentially but I don't have all those details). My sibling has been self employed with fluctuating and unpredictable income for just under 5 years. There's no way to keep up with the payments of credit card debit entered as a result of many debts owed to the small business. I'm looking for advice on what redemption rights are in the State of Michigan and how bankruptcy might offer an alternative to avoid the original mortgage companies from coming after my sibling if moving out of the house becomes the only option after the redemption period expires. I'm not sure if that's 6 or 12 months based on the situation. I need to know what the implications are for filing bankruptcy now versus waiting and what the pros and cons are for both scenarios. Thanks in advance! I don't even know what sort of attorney would be recommended for a consultation on something like this. It seems two areas of specialty are in order.
adonis Joined: 22 Oct 2005 Posts: 10574 Location: ALASKA 1090.82 Dollars($)	Posted: Sun Aug 22, 2010 9:18 pm    Post subject: Like 0 Dislike 0 Welcome sbutler, After the foreclosure sale, the lender has the rights to come after your sibling in order to recover the balance dues. If your sibling is unable to pay it off, then the lender will charge off the loan and the collection agency will harass him for the dues. If your sibling is unable to pay off the balance dues, he can file bankruptcy which will help him in getting rid of the balance dues. However, bankruptcy will have a negative affect on his credit report and lower his score by 200-250 points. _________________ Procrastination is the enemy of your financial success
sbutler210shield Joined: 21 Aug 2010 Posts: 2 1.00 Dollars($)	Posted: Mon Aug 23, 2010 4:37 am    Post subject: Like 0 Dislike 0 Thanks for the advice - all the way from Alaska!! We just consulted with an attorney that our realtor friend sent us to. It was a quick email consultation and she said we should consult with a bankruptcy attorney to determine if this is a suitable path. I think that's our next step now. It's unfortunate about his credit but he's waited this long and hasn't found any other options. On the plus side, he's still in his 30s so he has plenty of time to recover.

Quick Reply
Your Name
Subject
Image Verification	Enter the code above here : Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours

Page 1 of 1

---

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0