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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?

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

My house foreclosed and was sold at a sheriff sale. the deed its on my name &my husband name but loan on my husband name...but he passed away few months ago ...If I can come up with the amount to redeem my home, can I still be sued for the deficiency of the original mortgage, iam im michigan :oops:

Like | Dislike | Share | Posted: Sat, 03/31/2012 - 08:30 | Post subject:

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

Hi Guest,

If the loan is in your husband's name, the foreclosure won't have a negative affect on your credit report and the lender won't be able to come after you in order to recover the deficient balance. If you pay off the delinquent amount to the lender, you may be able to save the property from foreclosure.

Thanks

Like | Dislike | Share | Posted: Mon, 04/02/2012 - 01:06 | Post subject:

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

Do you know how long they have to decide to file for a judgement? Also, can I request a 1099c? to make sure they cannot get a judgement?

Like | Dislike | Share | Posted: Mon, 03/10/2008 - 17:41 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi puppa,

Welcome to the forum.

The lender can still sue you for delinquency judgment. Michigan is not an anti-deficiency state. So the lender can ask you if the sale price less than the amount you owe to the lender.

1099c is only issued if the lender forgives you debt but now you need not to pay tax on the forgiven debt as per the Mortgage Debt Forgiveness Tax Relief Act. Know more about it at - http://www.mortgagefit.com/tax/debtforgiveness-reliefact.html

Feel free to ask if you have any further questions.

Best of luck,
Larry

Like | Dislike | Share | Posted: Mon, 03/10/2008 - 17:38 | Post subject:

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

Hi Martin,

Welcome back.

The purchaser of a property in Michigan is responsible for the deficiency judgment if the court orders him to do so. The judgment is filed only after the sale because the lender doesn't know exactly what the bidding amount will be.

Most probably the statute of limitation, that is the period up to which the lender can file the deficiency judgment is 4 years in Michigan. The statute varies from one state to another.

Now, if the lender cancels the deficiency as a result of negotiation, then you may be sent a 1099-c form just to keep in writing that the debt has been canceled. But this does not mean you'll have to pay tax.

Thanks

Like | Dislike | Share | Posted: Mon, 03/10/2008 - 23:00 | Post subject:

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

what can a bank really come after in terms of my assets if a foreclosure happens...can they take my pension income and my social security income?

Like | Dislike | Share | Posted: Thu, 11/13/2008 - 07:35 | Post subject:

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

Hi distressed,

As far as I know, social security income cannot be garnished or taken away in case of foreclosure. Protection of pension income accounts may vary from state to state. Employee Retirement Income Security Act of 1974 (ERISA) may or may not protect the pension accounts. You will have to check your state laws if the pension accounts are protected or not.

Thanks,

Jerry

Like | Dislike | Share | Posted: Fri, 11/14/2008 - 01:49 | Post subject:

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

I HAD 2 MORTGAGES WITH HSBC. I LET IT GO TO FORECLOSURE. I SETTLED ON THE FIRST FOR 21% AND NOW ON THE 2ND THEY HAVE FILED SUIT WITH A DIFFERENT COLLECTION AGENCY/LAWYERS. THEY WANT 65% WHICH I DON'T HAVE. THE AMOUNT WAS ABOUT SAME $33,000. I HAVEN'T RECEIVED A SUMMONS YET. THEY REFUSE TO EVEN CONSIDER MY OFFER OF $6,600. WHAT RECOUSE DO I HAVE?

Like | Dislike | Share | Posted: Fri, 11/14/2008 - 12:26 | Post subject:

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

Hi STACKFIS!

I think you should try and some how pay back the debts to the collection agency. You might take up a personal loan as well. If you do not pay the debts, it will keep on accumulating and the collection agency may even double it up. They may even file a law suit against you.

Thanks,

Jerry

Like | Dislike | Share | Posted: Mon, 11/17/2008 - 03:52 | Post subject:

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

My house foreclosed and was sold at a sheriff sale. If I can come up with the amount to redeem my home, can I still be sued for the deficiency of the original mortgage?

Like | Dislike | Share | Posted: Wed, 02/04/2009 - 16:27 | Post subject:

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

I am unemployed and may face foreclosure. If I let the home go, what can my mortgage company to me legally, if I cannot pay the balance owed after they sell the home? I live in Michigan and my mortgage company is Green Tree Financial. Can I file for insolvency to rid myself of the taxes on the balance, if they file a dificiency suit? What legal fees can they charge me with, after the foreclosure?

Like | Dislike | Share | Posted: Sat, 03/28/2009 - 13:31 | Post subject:

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

Hi!

Welcome to forums!

To Guest!

If you pay off the required amount to the lender and get back the property, then the lender would not sue you for the deficient amount.

To Webee,

If you let the property go into foreclosure, the lender will be able to sue you for the deficient amount resulting from the sale of the property. If you cannot pay the deficient amount, then the lender may place lien on your other property or can garnish your bank account.

You can definitely file for insolvency but I would suggest you to contact an attorney and take his opinion on this issue.

Sussane

Like | Dislike | Share | Posted: Sun, 03/29/2009 - 22:00 | Post subject:

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

Hi

If you're the only one on the mortgage your wife can't be held liable for the loan, even though she's on the deed to the property. So, if she purchases a new home in her name, the mortgage company can't put a lien on her property.

Like | Dislike | Share | Posted: Mon, 05/04/2009 - 04:24 | Post subject:

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

My name and my wifes name are on the deed to our house, only my name is on the mortgage. In the state of michigan can the mortgage company go after my wife for the deficiency judgement also? If we purchase a new home and it is in my wifes name only can they put a lien on it since her name wasn't on the mortgage that was forclosed on?

Like | Dislike | Share | Posted: Sun, 05/03/2009 - 08:43 | Post subject:

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

my Judgement of divorce holds us equally responsible for any deficiency even though my ex-wife's name is not on the mortgage. Should the home go into foreclosure - will the Judgement of Divorce stand to hold her accountable for her part? I am in Michigan and with the Citigroup.

Like | Dislike | Share | Posted: Mon, 05/11/2009 - 20:33 | Post subject:

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

Hi mjohnbaur,

It is most likely that the lender will come after you in case of a foreclosure, if you are the only one on the loan. The lender approved your loan based on your credit, income etc. Thus, if you default they will hold you responsible for it, not your wife. But if the divorce clearly states that she will also be responsible for the deficiency, the lender may hold her liable for her part. It is up to them.

Like | Dislike | Share | Posted: Tue, 05/12/2009 - 02:46 | Post subject:

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

My house went to foreclosure after trying to sell it for over two years and more than a few personal complications. The house was sold at sheriff's sale for almost $60,000 less than I owed. Will I be sued for the difference or will the mortgage company decide on a lesser amount and set up reasonable payments? I obviously can't afford much. I have a primary residence that is also worth less than I owe but with a different mortgage company. My name is the only one on the foreclosed property but my husband and I are both on our primary. We bought it assuming we could sell my old house. How will he be affected? Can I quit claim off of our primary and remain on the mortgage? Can I save our home?

Like | Dislike | Share | Posted: Sun, 05/24/2009 - 14:31 | Post subject:

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

Hi

[quote:fb1ed8a87d]My name is the only one on the foreclosed property but my husband and I are both on our primary.[/quote:fb1ed8a87d]

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.

Like | Dislike | Share | Posted: Tue, 05/26/2009 - 04:58 | Post subject:

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

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.

Like | Dislike | Share | Posted: Thu, 05/28/2009 - 08:43 | Post subject:

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

How long does a bank have to go after a deficiency judgment on a foreclosure in the state of Hawaii?

Like | Dislike | Share | Posted: Mon, 08/31/2009 - 05:32 | Post subject:

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

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!

Like | Dislike | Share | Posted: Tue, 09/01/2009 - 12:24 | Post subject:

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