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live in michigan. what do we need to do foreclosure or bankruptcy?

Posted on: 27th Aug, 2009 07:03 am
we have come to a point that we stopped paying our house note. we tried to work with the bank, but when we were not behind they would not talk to us. so we tried to get the house mortified and boy did that back fire. they said we made too much and wanted all the back money asap( the lower amounts that you were aloud to pay) we were still not behind till we went with this program. now we are sinking fast. we have no other outside credit debt. paid them all off before, we both have had our hours cut at our work, and this house is falling apart. roof,plumbing,electrical,etc we are going to walk away, but how should we do it? what happens in michigan? should we file bankruptcy after we move? this house would never sell in a short sale. to many repairs. between the both of us our income was cut in half. we want to protect ourselves for our children. how do we keep someone from coming back after us later for money. its bad enoft we had to do this. but we still have to live on nothing? lisa p.s we have a lien on the house for windows too......
hi,

if the house is worth less than what you owe on it, there will be a deficiency from the foreclosure of the house. the lender can come after you to recover the amount of deficiency. there are certain states which have strict anti-deficiency statutes which prevent a lender from getting a deficiency judgment against a borrower. you can check with a local foreclosure attorney and find out if there are any such anti-deficiency statutes in your state.

if the lender is allowed to get a deficiency judgment against you in your state, you can file a chapter 7 bankruptcy. once you include your home and the mortgage in the bankruptcy, the home will be sold to pay off the mortgage. the deficiency will then become unsecured and it will be discharged in bankruptcy.
Posted on: 28th Aug, 2009 05:11 am
my house in Mi is falling apart. roof,plumbing,electrical,etc we are going to walk away, but how should we do it? what happens in michigan? should we file bankruptcy after we move? this house would never sell in a short sale.
should i stop pay now my credit is very good. the house is no safe to rent
and i remaried and live with my husband. i am more then a half undet water with my morgege.
Posted on: 31st Jan, 2011 01:50 pm
Hi rotem,

If you walkaway from the property, then the lender will foreclose it. You can file bankruptcy in order to get rid of your debts. But the foreclosure and the bankruptcy filing will have severe negative affects on your credit report and will lower your scores.

Take care.
Posted on: 02nd Feb, 2011 02:30 am
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