Foreclosure in Michigan>Question Details

Debbie, Other/Just Looking in Michigan

if my bank cant sell my home or sell for less than owed do i owe them money now that I've left my home to

Asked by Debbie, Michigan Fri May 9, 2008

the bank

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To follow up with Donald below, he is correct! I have found that each bank reports different on your credit report. Some banks will put a judgment against you for the amount oweing. It might still report as a foreclosure, or profit and loss. What I would do, and what I have helped many clients achieve is doing a loan modification with the current service provider. You can hopefully accomplish lowering your interest rate and locking that in for 2-3 years! Just a thought! Call if you have any questions...810-343-4170.
1 vote Thank Flag Link Fri May 9, 2008
Hi Debbie!

Sorry about the new user below... just a simple mistake of placement.

- As for your question, YES in most cases you still owe the money if you have not released ownership and been released from debit through a Bankruptcy Court or other legal action. - If your Lien Holder has repossessed the home or if it sells via a Short Sale or if you have just walked away from it... you should contact your Lien Holder to ask what their policy is and what they intend to do about it. Its your right to know. - A good BK Attorney may be good to consult. ----

I have found many people do not realize that there may be several months left before a full Foreclosure and in a case like that you could contact a good local Realtor to list and possibly sell your home, even if its a Short Sale....which would be better than doing nothing and letting the Foreclosure happen. You can see some info about Short Sales on the link below.

Hope this helps a bit,
-Don Sr. / Broker
Web Reference:
1 vote Thank Flag Link Fri May 9, 2008

If does end up being a short sale refer to this article by the IRS:

There debt relief if part or all the mortgage is forgiven.
0 votes Thank Flag Link Sat May 10, 2008
Debbie, I would agree taking items attached to the home may be included with your original contract with the bank. Yes, it may make it more difficult to sell the home among other things.
0 votes Thank Flag Link Fri May 9, 2008
It depends on if it is a short sale through the bank or a foreclosure. Some short sales do "forgive" the balance that is left over after the sale but some also hand out a 1099 for tax purposes on the forgiven amount.
0 votes Thank Flag Link Fri May 9, 2008
i dont no how to use this yet but i wanted to thank you all for your comments. i've just moved out 5 days ago and have to let the bank no this. i will ask then what they w ill do and what i'm responsible for . also i did list my house and it did'nt sell i do'nt haveenough equity to lower the price enough. ne last thing my brother wants to take my kitchen cabnets out and dish washer, i'm scared that will cause the bank to have more difficulty in selling. thanks again
0 votes Thank Flag Link Fri May 9, 2008
Debbie, if your home is sold in a short sale you may have tax consequences. The IRS considers forgiveness of a debt as income. You may have to pay taxes on the short sale difference (phantom income) there are outs if you can prove that at the time you were in bankruptcy or your liablilities exceeded you assests. Even if the lender releases the property they may not forgive the personal debt. As a Buyer you signed a Note and Mortgage. The Note remains unless you negotiate with the lender to forgive the loan and release the property.
0 votes Thank Flag Link Fri May 9, 2008
Debbie, Some good suggestions from others.

The Department of Housing and Urban Development is trying to help all homeowners. Please take some time to review information on their website. Housing Counseling agencies charge a fee. Some Counties, especially Oakland County offer counseling free to any resident.

This document may give you some more information

I agree, depending upon where your home is in the foreclosure or pre-foreclosure process a bankruptcy attorney may be your best recourse. There will be a fee.
Web Reference:
0 votes Thank Flag Link Fri May 9, 2008
Rick has a great point Debbie. Loan modifiation may be an excellent route in saving your home and your credit.
0 votes Thank Flag Link Fri May 9, 2008
There is no real definite answer to this question. First, I will preface this by saying it's important to contact an attorney.

If you've turned the home over to the bank and it sells for less than what your mortgage was for, the bank can choose to sue for the money. Will they go through the hassle? Depends on how much is owed, depends on bank, etc. I would contact the bank and ask what they will do in that circumstance.

But, if you're really concerned it is wise to speak with an attorney to give you some peace of mind.

Have you vacated the home already Debbie? There is a possibility of a short sale if you have not and are still within the redemption period. Opting for a short sale is considerably better for you than foreclosure.

Let me know if I can be of any further assistance.

Best of luck,
0 votes Thank Flag Link Fri May 9, 2008
4312 valley view ave.balto, 2004
when did this house sell?
0 votes Thank Flag Link Fri May 9, 2008
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