Posted on: 02nd May, 2010 08:55 am
i have a 1st mortgage (70k) that was sold at sheiriff sale in michigan, and i am in the 6 month redemption period. i also have a home equity loan (85k). the bidder at auction is telling me that the 85k will go away after foreclosure, and i will not owe anything. they are offering me a cash for keys $5000 to waive my redemption rights. does this sound right?
Hi shamill,
After the property is sold off at a foreclosure auction, the lender has the rights to recover the balance dues resulting from the sale of the property. If there is a deficiency of 85k, then the lender will take away the equity that you have in your property. Thus, you won't be owing anything to the lender.
As far as your redemption rights are concerned, it's your discretion whether or not you will want to waive it off.
After the property is sold off at a foreclosure auction, the lender has the rights to recover the balance dues resulting from the sale of the property. If there is a deficiency of 85k, then the lender will take away the equity that you have in your property. Thus, you won't be owing anything to the lender.
As far as your redemption rights are concerned, it's your discretion whether or not you will want to waive it off.
so, even though this is a second mortgage (only the first was foreclosed and the foreclosure was only for its value) this the second is still unpaid. i cannot be sued or chased for that money?
If the second mortgage lender receives the 85k, it will help him recover his dues. Then he won't come after you for the dues.