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 nguyenlo,
As you have insurance, it will help you in covering the deficiency judgment which results from the foreclosure sale of the property.
As you have insurance, it will help you in covering the deficiency judgment which results from the foreclosure sale of the property.
if i let home foreclose, what are the consequencies for me. i live in michigan
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.
If there is a judgement against my husband and his bank account is being siezed can they sieze my account if his name is on it?
Hi lissy,
If your husband's name is on your bank account, then your husband's creditors will be able to seize your bank account as well.
If your husband's name is on your bank account, then your husband's creditors will be able to seize your bank account as well.
Hello - we currently live in Michigan - but are moving to Florida for a job. We just spoke to a realtor today and our house is worth half of what we owe - yup - HALF. We thought about renting it out - but we still would have to pay an additional $300 per month on top of what we can rent the house out for - we are not sure what to do. If we walk away - they would only be able to sell the house for $60K, meaning we would still owe 60K? We can't afford to stay in Michigan - but we can't afford to also owe 60K? Any suggestions?
hi angel!
welcome to forums!
if you walkaway from the property, the lender will foreclose it. after foreclosure, the lender will come after you in order to recover the deficient balance resulting from the sale of the property. you can apply for a deed in lieu of foreclosure with your lender. in this case, the lender won't come after you to recover the deficient balance. he will forgive the dues.
feel free to ask if you've further queries.
sussane
welcome to forums!
if you walkaway from the property, the lender will foreclose it. after foreclosure, the lender will come after you in order to recover the deficient balance resulting from the sale of the property. you can apply for a deed in lieu of foreclosure with your lender. in this case, the lender won't come after you to recover the deficient balance. he will forgive the dues.
feel free to ask if you've further queries.
sussane
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
Angel
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
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
is a 1099 a from the bank and a 1099 c the same thing?
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
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
if you own 2 homes and have no choice but to let the 1st home go into foreclosure can they A) put a lein on your 2nd home and if so will this lein reflect the difference between what you owed and what the bak sold it for? B) can they garnish your wages and C0 can they raid your company sponsored 401k plan?
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.
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.
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.
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.
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.