Foreclosure in Michigan>Question Details

Mary, Home Owner in Michigan

Sheriff Sale and after question.

Asked by Mary, Michigan Mon Nov 28, 2011

Filled BK in Michigan, had first and second D/C from same lender. Sheriff sale is next month and then the redemption period of 6 months. Sheriff sale notices was on our door (only showed first mortgage even though lender holds both).

Will someone let us know if the house sells or if it is delayed?

Can the lender come inside before we leave?

The house has some cosmetic damage so I am assuming there will not be any cash for keys, can they sue us for the damage (leak/broken furnace)?

What happens if we stay 2 weeks after the redemption period will they start to evict us? If so how long does that take, does it hurt our credit, and can they sue us for the eviction fees?

Is there any way the lender can sue us for on the first or second mortgage, wear and tare damage, etc?

Thanks!!

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Answers

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Mary,

The best advise you have received in this forum would be; obtain legal advise from somebody qualified to provide legal advise....an attorney.

Do not expect cash for keys and to avoid your concern of being liable for damages, try to assure that there is not any further damage or demolition of the property.

You should be contacted about vacating the premesies. Also, you likely have had notices posted as to what firm is handling the foreclosure proceedings. If so,, they typically can provide owners the sheriff sale dates, redemption dates, and redemption amounts.
0 votes Thank Flag Link Tue Nov 29, 2011
Thank you for the replies.

Both the 1st and 2nd mortgage (same lender) were discharged in my BK last year. We decided to not reaffirm and lived in home on stay and pay basis. Our BK lawyer advised us that we can't be sued for anything to do with the mortgage. Hopefully this is correct. But we are afraid of being sued for other things. The lender is shady and we feel the will retaliate in some way.

Also, can they really come in before the 6 months ends? We always have cars parked in the driveway and 2 dogs that will bark if someone comes to the home. How can I protect myself from them trying to redeem earlier than they are suppose to? Thank you!
0 votes Thank Flag Link Mon Nov 28, 2011
Hello Mary,

I am going to give you a lengthy answer, but right from the start I will tell you there ISN'T one right answer. It will all depend on the lender and how that particular lender handles things. I can give you examples from my personal experience, and from experiences from my clients.

The Sheriff Sale will most likely result in a sale, very few, if any, homes do not sell at a Sheriff Sale. Occassionally homes sold at a Sheriff Sale are delayed. If you have the time I would suggest to be at the Sheriff Sale, more for informational purposes than anything else.

Once the Sheriff Sale occurs, legally you have a six month redemption period (unless you have acreage, then it's longer). Can the Bank come inside before you leave? The answer usually is NO, BUT I have seen Banks come inside a home BEFORE the six months are up. I have had conversations with Banks asking them why they have gone inside a home BEFORE the six months was up (in one case I was involved in, the Bank drilled out the locks in a month and a half and the people were still living there). (CHASE)

When I asked them why, I was told that they felt the home was abandoned and they wanted to secure it. So don't think for a moment that certain banks won't go in before the redemption period is up.

As far as the cash for keys is concerned, cosmetic damage is not all the banks are looking for. They may offer you cash for keys so you don't strip the kitchen, toilets, flooring and damage drywall or even turn the faucets on and walk. I would suggest you get a realtor to try and negotiate that for you. Most of the time what happens is, when the property gets assigned to a Realtor to monitor and then list the property, they may try and contact you to mitigate the situation, ask about Cash For Keys at that time, but it is NOT a given.

Can the bank sue you? Legally, yes they can come after you for both the shortfall and the damages. (I answer this not knowing if you filed the BK before or after you let the house go.) A lot of banks will (can)1099 you for the difference of the balance and what they sell the property for. You really should have looked into a Short Sale prior to all of this happening (assuming you didn't try a Short Sale). Luckily for most people, the banks are so busy with Short Sales and foreclosures right now, that they haven't actively been legally pursuing people for these issues.

My advice to you is; after the Sheriff Sale, do not keep too many valuables there just in case, I have seen too many homes with the locks changed and EVERYTHING the owners own, still in the house. Every bank is different. You may even want to communicate with the bank to keep the lines of communication open, which could help you keep in the loop as to the progress of the situation. I wouldn't hold my breath, but you never know.

I hope this helps a little!

HAIG
Elias Realty
(248) 379-6547
realtorhaig@aol.com
0 votes Thank Flag Link Mon Nov 28, 2011
From experience, the furnace is not an item that would keep you from getting the Cash-for-Keys:
The Bank's Realtor will visit you, give you 30 days, and offer you CFK, from $1000 to $3000.

After the Trustee Sale, the house basically belongs to the Bank.

Good luck and may God bless
0 votes Thank Flag Link Mon Nov 28, 2011
Mary:

Hi!! You will not be notified if the sheriff's sale takes place. You can contact the court and find out if it took place. The lender will most likely have the agent that is watching the property approach you just before the end of the redemption to let you know when you have to get out by. If the property appears to be vacant the bank can order a lock out but notify anyone interested in gaining access to the property on who to contact. The bank will have an agent overseeing the property they will usually approach you just prior to the end of redemption to notify you of the date you are supposed to be out by. They will then notify the bank to start eviction proceedings. The courts in my experience usually give 2 weeks to vacate. As to your questions regarding lawsuits, you need the legal advice of an attorney.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Mon Nov 28, 2011
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