Foreclosure in 49079>Question Details

Kterp, Home Owner in 49079

What happens to me if I forclose on my home in Michigan? Do I have to pay back anything or just walk away?

Asked by Kterp, 49079 Tue May 15, 2012

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If you are in the 49079 zip code, you may be suprised at what your home value might be. The market has improved in the last 6 months. Talk to a qualified REO realtor before you do anything and request a cma/value on your home. You might be pleasantly suprised. If it is not sufficient to pay off the full amount, then you can inquire about a short sale, deed in lieu or even what to expect for a cash for keys offer that is often offered as a measure of last resort. You have more options now that ever before in the past. Dont just assume you owe more than its worth, these days you might be suprised. Many homebuyers either will not purchase a home that is not move in ready, or can not obtain financing for a vacant distressed REO. Be sure to consult with a qualified legal and/or accounting professional regarding any option you choose to pursue.

Richard Stewart
REO Specialists llc
914 S Burdick St
Kalamazoo MI 49001
1 vote Thank Flag Link Tue May 15, 2012
There is not a simple Yes or No answer to this question. There can be many variables. Do you have only one mortgage or do you have a second mortgage or an equity line?

Typically, when your lender forecloses, they bid on your house at the sheriff's sale. If their bid is for the entire remaining principal plus late fees, attorney costs, etc. this is called a "full bid". When their bid is a full bid, it means that they have written off the entire amount as bad debt and they can not come after you for anything in the future.

However, today about 30% of the time, a lender will bid less than what is owed. This is called an "underbid". When the lender bids less, it keeps the door open for them to come after you in the future to collect the difference between what they realize out of the sale of the house and what you owe.

If there is a second mortgage with a different lender or an equity line, those lenders can still pursue you in the future. So, you can see there are many different scenarios.

After the foreclosure sale, you still have a redemption period where you can sell the house on a short sale. During the short sale negotiations, it is possible to get the lenders to waive all deficiency which would mean that they would not come after you in the future.

If you want more information specific to your circumstances, call me and we can discuss your options.

Kathy Persha
Keller Williams Realty
248-930-0198

http://www.kaperproperties.com
http://kathypersha.yourkwagent.com/
http://www.kw.com/kw/agent/kathypersha
http://www.kathyhelpsmichiganhomeowners.com/
1 vote Thank Flag Link Tue May 15, 2012
Talk to an attorney before you make a decision to stop making payments and walk away. Bankruptcy attorney's often provide free consultations, get legal advise. Different States have different laws. Foreclosures, like short sales have serious consequenses which people don't realize until it is too late. Beverly Howe, ABR, GRI, TRC, CIPS broker@floridabuyerbroker.com
0 votes Thank Flag Link Tue May 15, 2012
Hello,

Every bank is different and legally they do have the right to come after you to collect any money that is owed. They may also 1099 you for the difference of what is owed on the home and what they eventually sell it for.

Besides that, a foreclosure remains on your credit longer than a short sale would. Why not consider a Short Sale? A short sale may be your best option.

Why not come in and talk to our staff about Short Selling your home? We are the number one Short Sale company in Michigan and we can definitely help you. Don't just think foreclosure is your only option.

My contact information is below, feel free to contact me.

Thank you,

HAIG
Elias Realty
(248) 379-6547
realtorhaig@aol.com
0 votes Thank Flag Link Tue May 15, 2012
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