Foreclosure in 48030>Question Details

Julianne Now…, Home Buyer in Warren, MI

Is Michigan a recourse mortgage or non-recourse Is Michigan a recourse mortgage or non-recourse?

Asked by Julianne Nowak, Warren, MI Mon May 7, 2012

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Jason Gorton’s answer
Michigan is a recourse State. I highly recomend speaking to an attorney to understand the implications of this. My understanding is that there is six years under contract law that a lender can seek a dificiency judgment.

There are also completely separate tax issues, so you will want to speak to a qualified CPA.

Again, these are very specific legal and tax issues so your best bet is to speak to a qualified attorney and CPA regarding your situation.
0 votes Thank Flag Link Tue May 8, 2012
Michigan is a recourse state. The lender/investor can still come after you for what's owed.

It's best to talk to a real estate attorney and your CPA to find out the details!
0 votes Thank Flag Link Mon May 7, 2012
The laws are constantly changing,
but the last time I checked,
Michigan was a recourse state.

The one possibility that I can suggest, is to volunteer your "DEED IN LIEU" if the Bank will give you a letter absolving you of the debt for the difference: I have heard of it happening, and it couldn't hurt to try.
The only caviate I would be aware of, is to have an Attorney peruse the letter. Know what I mean?
0 votes Thank Flag Link Mon May 7, 2012
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