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Need to understand deficincy laws in Michigan

Posted on: 28th Mar, 2011 04:22 pm
I just want to be make sure that I understand how this works. We have a 1st with a balance of $88,000 and a second with a balance of $141,000. We are looking at a foreclosure but currently have the home listed as a short sale for $170,000. If the home goes to foreclosure and they sell it at a loss, we can use our tax assement to show what the house is worth and have the definiency lower to the difference of the two.
Hi randolu!

Welcome to forums!

After a foreclosure, the deficiency judgments are permitted in Michigan. However, as a borrower, you can claim that the foreclosure sale was not for fair market value of the property as a defence in order to avoid paying the deficient balance.

Feel free to ask if you've further queries.

Sussane
Posted on: 28th Mar, 2011 08:18 pm
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