How does deficiency judgement work in Michigan?

Thank you,

say they come after me for 30,000. WOuld I have to pay that 30,000 in installments at an interest rate? How long of a time frame do they typically give?

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

Hello ,great forum. My question is my home sold in sherrifs auction for 4500.00 and my loan was for 104,000.00. I redeemed my home for the sell price,plus costs and fees.My question is the defeicency still owed ? Can I file bankruptcy? I do not own the home , I sold it and I live in Michigan

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.

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?

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

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???

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

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?

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

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?

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.

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.

Welcome leaxa,

The deficient balance will be the difference between the amount owed on the property and the price for which the property was sold.

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.