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How does deficiency judgement work in Michigan?

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?

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You can set up a payment plan with your lender so that it becomes affordable for you to pay off the dues.

Like | Dislike | Share | Posted: Fri, 02/04/2011 - 01:30

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my house was foreclosed and the bank discounted $145,000 so that the bid was just for$ 62,000. it was sold for $52,000. the appraised value of the property is 52,000. what is my deficiency amount? property is in MI.

Like | Dislike | Share | Posted: Tue, 06/28/2011 - 10:53 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Thu, 02/09/2012 - 08:19 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Thu, 02/09/2012 - 08:19 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you, we're concerned that we are going to lose our inheritance to the bank in a deficiency judgement in Michigan since the house is underwater. Do banks negotiate at all prior to a foreclosure? The property is underwater by the same amount of the inheritance, we don't stand a chance at keeping that inheritance, do we?

Like | Dislike | Share | Posted: Tue, 06/07/2011 - 02:47 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Thu, 02/09/2012 - 08:19 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi mwcarp,

You can either pay off the lien in instalment or you can pay it off in one go. They can either garnish your wage or place a lien on your property. They cannot go for both the options.

Take care.

Like | Dislike | Share | Posted: Wed, 02/02/2011 - 01:05

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a 1st mortgage (70k) that was sold at sheiriff sale in Michigan, and I am in the 6 month redemption period. I also have a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] (85k). The bidder at auction is telling me that the 85k will go away after foreclosure, and I will not owe anything. They are offering me a cash for keys $5000 to waive my redemption rights. does this sound right?

Like | Dislike | Share | Posted: Sun, 05/02/2010 - 08:22 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

is a 1099 a from the bank and a 1099 c the same thing?

Like | Dislike | Share | Posted: Mon, 01/24/2011 - 15:40 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if i let home foreclose, what are the consequencies for me. i live in michigan

Like | Dislike | Share | Posted: Tue, 08/24/2010 - 14:47 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Guest,

If you have already redeemed the property, then the lender won't be able to come after you for any deficient balance. You can file bankruptcy if you wish. You should contact a bankruptcy attorney and he will help you in filing the bankruptcy.

Like | Dislike | Share | Posted: Thu, 02/17/2011 - 22:07

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Sun, 12/18/2011 - 21:49

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have been married for 2yrs now. I have a home in Detroit mtg bal about 60,000. worth about 20,000 at best with decline in property value. My husband has a house in Redford MI mtg bal about 120,00 worth about 50,000. There is a lot of forclosures in both areas where our homes are located.We live in his house and my brother was renting mine covering my mtg pymt, he has this month passed leaving me to pay the mtg again. The mtg is current and it is cheaper to live in my house instead of my husband but Redford is a safer and better area and home owners and car ins is way cheaper in the burbs compaired to the city. We're both employed but cannot afford to pay for both homes and I do not want to go back to live in Detroit and finding a reliable renter is impossible with the unemploment rate so high. Neither home is worth what we owe on them and our credit isn't that great. At this point what should we do???

Like | Dislike | Share | Posted: Thu, 05/26/2011 - 20:13

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

The lender can place a lien on your second home in order to recover the deficient balance resulting from the sale of the property. If a lien is placed on the property, then the lender won't garnish your wages.

Like | Dislike | Share | Posted: Mon, 01/31/2011 - 01:05

nguyenlo10's picture
nguyenlo10 | Joined: August 7, 2010 04:41 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for the info Sussane. I've contacted my lender for a deed in lieu of foreclosure, but they don't seem willing to work with me. They say it's a rental and they're not going to do a deed in lieu on a rental. It's a rental, but I lived there for 5 years and then my situation changed, so I didn't purchase it as a rental property.

I think I am willing/have to foreclose, and as a last resort, if I get slapped with a judgement, then I will declare Ch.7. I've already been speaking to an attorney regard this.

Can you tell me if the FHA will cover the top 20% of the loan? This will help my decision. After all, that's why I've been paying monthly fha mortgage insurance. I know it protects the lender in case of default, but it also indirectly helps me by lowering the deficiency.

Like | Dislike | Share | Posted: Thu, 08/19/2010 - 12:04 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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 $195,000.00 but the bank discounted 145,000.00, does this make a difference? does it mean that I have to pay the servicing agency,147,000.00$

Like | Dislike | Share | Posted: Wed, 06/29/2011 - 16:00

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My ex boyfriend lives in the house that is in both of our names. He is supposed to take care of the house but isn't making any money. We are in Michigan. If he files chapter 7 and is released from the house and I going to be responsible for the whole deficiency? Should I file chapter 7 first to make him responsible?

Like | Dislike | Share | Posted: Fri, 03/19/2010 - 09:48 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have no savings but do have two other investment properties that
are paid in full. I am on retirement and social security.

Can the lender take my investment properties to pay for a deficientc
judgment?

Like | Dislike | Share | Posted: Sat, 05/22/2010 - 11:15 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To snowfanatic,

If your property is auctioned off at the sheriff sale and the lender purchases it back for an amount same as the outstanding balance on the loan, you will not be responsible for any deficiency. Thus, if the balance on the first mortgage is $85k and the property sells off at exactly the same price at the auction, the lender cannot come after you for any deficiency. However, since there is a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] on the property, you will be liable for a deficiency on it and the second lender can come after you for it.

Like | Dislike | Share | Posted: Mon, 03/15/2010 - 03:14

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jeremy!

Welcome to forums!

1099a and 1099c are two different types of forms. 1099-A deals with acquisition or Abandonment of Secured Property. 1099-C deals with Cancellation of Debt.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 01/25/2011 - 00:09

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

So when they put a lein on your house, how do you take care of that? Do you pay them installments, does these payments include interest?

Aloso, do they decided to either garnish your wages or put a lein on your house?

Sorry if my questions are ignorant, I just really would like to learn more about this.

Like | Dislike | Share | Posted: Mon, 01/31/2011 - 05:40

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mr. Tom,

It will be your responsibility to negotiate with your lender and apply for a loan modification. In case the property is foreclosed, the lender may forgive the deficient balance resulting from the property sale. This might help you saving your inheritance.

Like | Dislike | Share | Posted: Wed, 06/08/2011 - 00:11

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Mon, 09/26/2011 - 17:27 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You can list the property in the market and try to sell it off. This will be a good option for you as you don't want to go back to Detroit.

Thanks

Like | Dislike | Share | Posted: Fri, 05/27/2011 - 00:21

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Thu, 06/30/2011 - 01:40

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You will be able to get rid of the property after the foreclosure. However, you will have to pay the deficient balance resulting from the sale of the property. Also, your credit score would get reduced by 250 points and you won't be able to get a mortgage in the next 3-4 years.

Like | Dislike | Share | Posted: Wed, 08/25/2010 - 02:42

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Thu, 08/25/2011 - 12:18 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Thu, 08/25/2011 - 22:56

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi nguyenlo,

As you have insurance, it will help you in covering the deficiency judgment which results from the foreclosure sale of the property.

Like | Dislike | Share | Posted: Fri, 08/20/2010 - 01:59

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Sun, 11/15/2009 - 11:21 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks Sussane - is it hard to get a deed in lieu of foreclosure? I just wasn't sure - I planned to call the bank - maybe they could work with us to lower the payment to meet what the rent would be - didn't know if banks ever did that.

Angel

Like | Dislike | Share | Posted: Fri, 01/21/2011 - 10:27 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To questioning,

If you file [url=http://www.mortgagefit.com/bankruptcy/chapter7.html]chapter 7 bankruptcy[/url] 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 court’s supervision, you can pay off the loan and [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid foreclosure[/url].

To sadand,

[quote:3dbcdbd7e2] i owned my house for 22 itook a small loan they sold my loan 5 timesthe bank kept ratstng the mortgage iwant to sue[/quote:3dbcdbd7e2]

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?

Like | Dislike | Share | Posted: Wed, 11/18/2009 - 04:20

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.....

Like | Dislike | Share | Posted: Sun, 11/15/2009 - 11:59 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have been reading about foreclosures, now in the position that my family may be facing one. I live in Michigan, my question: is there a time period governing how long a mortgage company can come after you for the Deficiency on a forclosure on a 1st mortgage? Also, the home is in my name, can my spouse purchase a home at a later date and not be concerned about the mortgage company applying a lein to that property?

Like | Dislike | Share | Posted: Thu, 03/03/2011 - 05:48 | Post subject:

nguyenlo10's picture
nguyenlo10 | Joined: August 7, 2010 04:41 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello,
I have a rental property that may go into foreclosure. I didn't buy it as such, I lived there for 5 years, but then my family outgrew it and my wife bought a house in her name only. I've had tenants in there for the past year, while subsidizing some of the mortgage payment. I cannot afford to keep this up, since I've had a 20% salary cut and my wife has had reduced hours at work as well.

I had a FHA loan in my name only on the rental. Does the FHA cover the top 20% in case of default? There's only 1 mortgage note as well, and if there is a deficiency judgment against me, can the bank sell the 1st mortgage debt to a collection agency? I never had a 2nd mortgage. Thanks so much!

Like | Dislike | Share | Posted: Wed, 08/18/2010 - 09:24 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I attempted to sell my home in Michigan in a short sell, but my home was foreclosed on 2-14-10. Recently married, moved out of state. Will our joint bank accounts be at risk by the first and second mortgages that I am liable for in Michigan.

Like | Dislike | Share | Posted: Sun, 02/07/2010 - 07:25 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sazzle,

If your ex-boyfriend files bankruptcy Chapter 7 and gets discharged from his debts, he will not be personally liable for the mortgage payments. As a co-borrower, you will then be left to repay the mortgage. However, if you also file Chapter 7, you will be released from the liability of the mortgage. However, in that case the lender will foreclose the property to satisfy the mortgage lien. If you do not intend to keep the property, you can file Chapter 7. But this will affect your credit negatively and the bankruptcy will remain on your credit report for about 7 years.

Thanks,

Jerry

Like | Dislike | Share | Posted: Tue, 03/23/2010 - 02:24

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Tue, 01/19/2010 - 00:52

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Sat, 01/16/2010 - 16:57 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Angel,

A deed in lieu of foreclosure is not hard to get but it is always the discretion of the lender whether or not he will accept your request.

Thanks

Like | Dislike | Share | Posted: Sun, 01/23/2011 - 20:52

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Tue, 01/19/2010 - 05:54 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

how much time does a lender have to request a deficency judgement ? I can't tell for sure. Thanks in advance !

Like | Dislike | Share | Posted: Thu, 11/26/2009 - 11:50 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Franklin,

If there's considerable amount of deficiency from the foreclosure sale of your house, the first and second lenders can come after you to collect it. They may get a judgment against you and garnish your wages or come after your bank accounts. Thus, your joint bank accounts could be at risk. It's better to have the bank account solely in your spouse's name to make sure the lenders do not come after it to recover the loan balance.

Like | Dislike | Share | Posted: Wed, 02/10/2010 - 22:11

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi
I lost my job and found a new one out of town. I was able to get a mortgage for a 2nd house before selling the "old one". Now that I'm selling it has to go through shortsale since the house has lost 40% of it's value...I'm concerned that if the shortsale is not approved (most likely) it goes to foreclosure and then after it I can be sued to pay for the deficit between forclosure sales price and my current debt (principal)?

Like | Dislike | Share | Posted: Sat, 03/27/2010 - 08:59 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mr. Tom!

Welcome to forums!

I guess your names are not mentioned on the mortgage docs. In such a situation, you can surrender the property to the lender and ask him to foreclose it. This will help you as well as the other heirs to get rid of the property.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Sun, 06/05/2011 - 22:52

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

The SOL period in Michigan is 4 years. The lender will be able to contact you for deficient balance for 4 years after the foreclosure sale. Your spouse will be able to buy a property in his/her name and the lender may not be able to place a lien on it.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 03/03/2011 - 23:26

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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???

Like | Dislike | Share | Posted: Sun, 12/04/2011 - 07:53

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Tue, 12/22/2009 - 18:07 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My father took out an interest only loan in 2007 for $400K, house is only worth $200K now, both parents have recently passed and the mortage payments have been on time. The inheritance is about $200K in cash accounts to be split equaly to us 4 heirs through a will of my mother.

None of us can afford the house. The genreal concensus is that we're one big juicy target of the bank, easy pickings for a defiency judgement in Michigan.
What are our chances of negotiating with the bank? Any tips or suggestions for keeping some of our inheritance?

Like | Dislike | Share | Posted: Sat, 06/04/2011 - 19:29 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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 [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url].

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.

Like | Dislike | Share | Posted: Fri, 09/25/2009 - 17:02 | Post subject:

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