Foreclosure in Royal Oak>Question Details

Mike, Other/Just Looking in Michigan

My second is a intrest only equity loan. What happens if I default?

Asked by Mike, Michigan Sat Jan 31, 2009

I was laid off in Late October 08. Running out of cash, and ideas. Looks like I will have to default soon.
My main concern is the second interest only equity line. I'm so upside down the first it prob. will not be covered after auction. I'm in Michigan. I owe 125,000 on the first, 40,000 on the second. And have credit card bills....ugh

Help the community by answering this question:

Answers

4
Mike,

In addition, the State of Michigan is running commercials about Save the Dream. They may be able to help you negotiate.

http://michigan.gov/mshda/0,1607,7-141-45866_47905-177801--,…
Web Reference: http://mi-living.com
1 vote Thank Flag Link Sat Jan 31, 2009
Mike,

So sorry you are in this situation. It is all too common in Southeast Michigan right now.

There are many articles on our blog about short sales and foreclosure. I have linked to the short sale articles for you below. You can do a search in the sidebar for foreclosure articles if you wish.

You might also want to get in touch with HopeNow http://www.HopeNow.com

As for what happens, if you sell short, then the second mortgage will have to negotiate for what it will accept in a short sale. It will be a few thousand dollars, typically. If you foreclose, then they will get nothing if your home is less than what you owe the first. Your credit card debt is unsecured.

I would be happy to talk to you. Our team has helped many sellers like you with short sales and we are just down Woodward from you in Birmingham.

Good luck.
1 vote Thank Flag Link Sat Jan 31, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Gary,

That is a very good link. You give such helpful answers to consumers!

Maureen
0 votes Thank Flag Link Sat Jan 31, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Mike,

I first must commend you for your approach and effort in reaching out here to investigate your options. Unfortunately if you don't see yourself getting the cash flow back in order to maintain your payments and savings are depleting, you are faced, like so many of us, with the possibility of foreclosure in the future. If that is ineveitable, we would recommend you consider attempting selling the house. Of course, I understand the upside down situation. Another common situation so many of us are in. Thus, we recommend you consider the house sale attempting a short sale scenario. Rather than explain all of that here, I have included our website where we provide basic information (various links) regarding foreclosure and short sales. Also, I would be happy to discuss your situation if you prefer emailing me or calling direct. Again, I commend you for addressing your concerns in advance of any foreclosure proceedings.

Kay Pearson
248-860-0366
kaypearson@maxbroock.com
Max Broock ~ Real Estate One
Web Reference: http://www.KayPearson.com
0 votes Thank Flag Link Sat Jan 31, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer