I live in Michigan and my story is kinda long but i will give you the shortest version i can.
3 years ago i owned my property and a single wide mobile home that was on it free and clear. well i went to a mortgage company in the town i live in and he told me i was approved for a mortgage after much thought we found the house we wanted and they did a thing where they could tell us what the value would be once the house was on the property,which it would have given us equity of about 35k-40k so they told us we would have to first get a construction loan and when the house was done they would convert that to a mortgage and i asked the man at the mortgage company at least a dozen times "what happens if i cannot get the end mortgage" and was told everytime that he could not get me a construction loan without the end financing in place already and that would not be a issue. And he assured us that there would be enough equity in the house to take some money out to pay off my truck and a couple other things which would equal about half my house payment.....so we did it and we have been drug through the mud ever since.We have been very close according to the 7 different lenders we have been to over the last three years but no one can seem to get it done.I earn a above average income and i thought i would be in a better place now because my house payment was going to be around 700 a monthwith my truck paid off and the other things i mentioned which equal about 2/3 of that payment amount.But now i pay 1050 a month just to the construction loan company plus the truck and the other things plus i have the taxes and insurance on top of that. Three years later i have paid over 40k in interest only payments to the construction loan company and continue to get behind because i was unable to pay off my truck and the other things i had plan to pay off with the home loan..I have paid out 10k in credit repair and now i am behind in my costruction loan so my real question here is what happens if they forclose on my house?Is the laws the same with a construction loan as it is with a mortgage as far as the forclosure process?I don't want to let my house go but i don't see as i have much choice in this situation i am in now,
thank you Terry