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How does deficiency judgement work in Michigan?

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?
Hi

"My name is the only one on the foreclosed property but my husband and I are both on our primary."

Since your name is the only name on the foreclosed property, your husband's credit should remain unaffected. But if the primary residence goes into foreclosure, both you and your husband's credit will take a hit as both of you are on the primary residence. A foreclosure on your other properties will not affect your primary residence. You have no fear of losing your principal house, if you keep making the mortgage payments on time. As for the deficiency due to the foreclosure on your other property, you can negotiate with the lender and settle for an amount less than owed.
Posted on: 26th May, 2009 04:58 am
File bankruptcy. List the home and any equity loans, junior loans, 2nd mortgages, etc. Then they cannot come after you for anything, except what the judge states will be paid to the lenders. Bankruptcy is worst thing to happen in most people's lifetime, but if you lost your job, are paid less than you once were, or over your head in high interest credit card debt, this will relieve you of all those lenders threatening, harassing and suing you forever. There is no limitation on suing for money with unpaid loans. It could go on for a long time, and they will just not go away. People will think a lot lot less of you, if they know you filed bankruptcy, they may not even want to be near you, but life will be livable.
Posted on: 28th May, 2009 08:43 am
How long does a bank have to go after a deficiency judgment on a foreclosure in the state of Hawaii?
Posted on: 31st Aug, 2009 05:32 am
If my divorce papers indicate that I should not be held liable for the mortgage but my name is still on the mortgage bills will I be responsible for the deficiency now that my ex has let it go into foreclosure?

Thanks!
Posted on: 01st Sep, 2009 12:24 pm
we have a home in michigan that is now in foreclosure. the mortgage company would not accept a short sale offer and now we're on our way to a full forced foreclosure. we live 800 miles away in another state and the house has been on the market for 14 months with zero offers. the mortgage company has also turned down a deed in lieu of foreclosure.

my question: what happens if we file for bankruptcy when the mortgage company comes to collect? we are speaking with an attorney .... just wanted some other opinions.
Posted on: 25th Sep, 2009 05:02 pm
i owned my house for 22 itook a small loan they sold my loan 5 timesthe bank kept ratstng the mortgage iwant to sue
Posted on: 15th Nov, 2009 11:21 am
well the attorney work for the banks ;court;mortgage companies they do not take a ioath to you only a oath to the courts not you figure it all out.....
Posted on: 15th Nov, 2009 11:59 am
To questioning,

If you file chapter 7 bankruptcy and include the debts in it, your house will be sold to pay off the mortgage. After the discharge from bankruptcy you will no longer be liable for the mortgage. If you want to keep the house, you can reaffirm the mortgage with the lender prior to the discharge. If you file chapter 13 and make payments as per the repayment plan under the cour supervision, you can pay off the loan and avoid foreclosure.

To sadand,

" i owned my house for 22 itook a small loan they sold my loan 5 timesthe bank kept ratstng the mortgage iwant to sue"

Can you elaborate on the situation? Why do you think this is a fraudulent mortgage? Are you facing any problem regarding mortgage payments? On what ground do you want to sue the lender?
Posted on: 18th Nov, 2009 04:20 am
how much time does a lender have to request a deficency judgement ? I can't tell for sure. Thanks in advance !
Posted on: 26th Nov, 2009 11:50 am
My condo is in foreclosure and i have an 80-20 with the primary is aurora and second with citi, i had a short sale offer and it took aurora 4 months to approve it and the buyer walked. Now i was going to try a dead in liu of foreclosure but wasnt sure if i even could with an 80-20, can anyone help me out?? My second question is if my primary loan does foreclose, does that wipe out the second or 20% mortgage?? thank you for your help.
Posted on: 22nd Dec, 2009 06:07 pm
hi toolman,

it depends on your state laws, how much time your lender will have to obtain deficiency judgment after the foreclosure sale of the house. for instance, in ohio the lender gets 2 years to sue the borrower for deficiency. after they get a judgment, they will have about 21 years statute of limitation to collect the debt from the borrower. which state do you live in?

hi nick,

if you want to do a deed in lieu on the property, you will have to take permission from both the first and the second lender. if the first lender does foreclose on the property, the second mortgage will not be wiped off. you will still be liable to pay it off. the second lender can sell off the debt to a collection agency, who can sue you even after the foreclosure to collect the remaining balance on the loan.
Posted on: 22nd Dec, 2009 11:23 pm
I live in Michigan. My lender foreclosed on my house and the same lender bought said house at the sheriff sale auction at about half less than the mortgage. Could the lender still come after me for deficiency?
Posted on: 16th Jan, 2010 04:57 pm
Hi Guest,

Did the lender pursue a judicial foreclosure? In case they did, they have the right to obtain a deficiency judgment against you. However, in case you can prove that the actual value of the property was more than what the lender bought it for, you will not be responsible for the entire deficiency. But if at the time of the sale, the house was actually worth about half less than the debt owed on it, you will be liable for the entire deficiency.

Thanks,

Jerry
Posted on: 19th Jan, 2010 12:52 am
A judicial foreclosure, they did. How can one prove the actual value of the house at the time of auction? How do lenders figure the dollar amount that they pay for the auction? Don't they factor in the amount that they can recoup with their bidding price. BTW, nobody else bid on it.

THANK YOU, Jerry.
Posted on: 19th Jan, 2010 05:54 am
Hi Guest,

When there's no potential buyer to purchase the property at the auction, the lenders often buy the property and then sell it off in future to recoup the loss. As a borrower, you can use a recent appraisal or the tax assessed value of the property to prove how much the property is worth and whether the lender purchased it at a fair price.

Thanks,

Jerry
Posted on: 20th Jan, 2010 01:31 am
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