Is Michigan a non recourse state? If not, if someone decided to foreclose in the state of Michigan could the

Asked by Karen, Michigan Mon Jan 26, 2009

bank or mortgage company come after your other assets or garnish your income?
Thanks

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8
Maureen Fran…, Agent, Birmingham, MI
Mon Jan 26, 2009
Here is a link from the Michigan Mortgage Broker's Association web site.
2 votes
William Rees…, , Waterford Township, MI
Mon Jan 4, 2010
Karen,

Michigan has what is called the " Full Bid Credit Rule" and what that means is that if at the Sheriff's sale the lender bid the amount owed on the property at the time, they are considered to have agreed to these terms and any difference between the original mortgage and what they recieved is a wash and they have no recourse. However, the foreclosure will stiil show on your credit as not being fulfilled as agreed.

Typically, most lenders in Michigan make a full bid at the Sheriff Sale as the lender really just wants to cut its losses. They know how costly it is to go after 10-20 thousand dollars.

I would check with a couple different Foreclosure Attorneys to be safe. They will usually give you free advice if you just have a question or two.
1 vote
droot21, , Sterling Heights, MI
Thu Jul 26, 2012
Michigan Foreclosure Law. Michigan is a recourse state and can seek remedy as a result of a short payoff. Each lender treats the debt owed to them with a different set of rules. Your agent/broker, attorney or third party negotiator should request a waiver of deficiency in the short sale negotiation process. And, request the lender to report the sale as "paid as agreed with a full release of satisification".
0 votes
Biology92, Home Owner, Grass Lake, MI
Wed Nov 9, 2011
what happens if you simply walk away from a house?
0 votes
Mike Stawizky, , 48382
Mon Jan 4, 2010
Hello Karen,
Since Michigan is a non recourse state it is not likely that anyone will come after you, but they may ask you for some kind of compensation. But short sales, foreclosures and bankruptcies are untouchable. We have a legal team that handles our short sales and they will tell you the same thing. If I asked you for 10 or 20K would you give it to me? Don't give it to them either. Feel free to contact me if you have any further questions.

Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406
teamstawizky@kw.com
Web Reference:  http://moveinnow.org
0 votes
Mike,

The information you've provided is incorrect - not to mention grossly unethical. Posting inaccurate information isn't helpful to anyone. You should refrain from doing so.

Ryan Overmyer

http://michiganshortsalehelp.org/
Flag Tue Dec 10, 2013
Mike,
You are giving incorrect information here regarding Michigan Foreclosure Law. Michigan is a recourse state and can seek remedy as a result of a short payoff.
Flag Thu Jul 26, 2012
Kim Kostoff, Agent, Commerce Township, MI
Thu Dec 31, 2009
Hello Karen,

Every situation is different. It really depends on the lender, what is owed , and where the offer comes in at. Also it depends if you have one mortgage or two. Is there a hardship involved? loss or reduced income, upside down on your mortgage. The worst thing you could do is nothing if you need help. There are options available. Give me a call and we can discuss further. Have a great day! Happy New Year too!


Kim Kostoff
248 842-8626
0 votes
Derek Bauer, Agent, South Lyon, MI
Wed Jul 29, 2009
There is a LOT that goes into this topic, so there is no cut-and-dried answer. It depends on many factors. For instance, if you owe $150,000 and the bank bids $100,000 at the Sherriff sale, you could still be on the hook for that $50,000 PLUS whatever a second mortgage may have been.

To many people in this state are under the impression they can walk away from a house with NO ramifications. Maybe not in the short-term due to lack of manpower, but down the road, it is a real possibility...
Web Reference:  http://DoorToDreams.com
0 votes
Mike Stawizky, , 48382
Tue Jul 28, 2009
Hello Karen,

It is not likely that the lender would go after your assets, but a second lender probably would. Michigan is a non-recourse state but since the second lender would probably not get what they invested in the property they would most likely pursue reinbursement. I hope that I answered your question. Feel free to contact me with any further questions about this subject or others.

Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406
Web Reference:  http://moveinnow.org
0 votes
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