Foreclosure in Michigan>Question Details

Rilljay, Other/Just Looking in Michigan

What happens after your house is foreclosed on? Can the bank come after you for the difference they sell the?

Asked by Rilljay, Michigan Sun Aug 9, 2009

house for? or do you just walk away?

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I recommend that you talk to a tax accountant and possibly an attorney. There are exclusions to this rule and your tax accountant may have the ability to show that you are insolvent to pay such difficiency. This can all depend on whether this was your principle residence. It is my understanding that just walking away may not relieve you from a difficiency judgement. It's important that you acquire all the accurate informatin you can so that you are making informed decisions.

I have also included a link here that relates to your question. Again, discuss these matters with your tax accountant and possibly an attorney.
http://homebuying.about.com/od/foreclosures/f/072509_Short-S…

Kay Pearson, CRS
Associate Broker
Real Estate One - Max Broock
31 S. Main Street
Clarkston, Michigan 48346
248-860-0366
kaypearson@maxbroock.com
Web Reference: http://www.KayPearson.com
0 votes Thank Flag Link Mon Aug 10, 2009
Yes, the bank could come after you for the difference. Example would be if you owed 120,000 and you sold the house for $115,000. Then technically you owe the difference of $5,000.

Generally, you could try to negotiate with the bank to "forgive" the difference. If the bank agrees, make sure you get it in writing.
0 votes Thank Flag Link Sun Aug 9, 2009
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