Posted on: 23rd Apr, 2007 09:00 pm
We recently had a job relocation out of Michigan and still have a home for sale there. The mortgage is only in my wifes name but both of us are on the deed. We are in a position now where we can barely make mortgage payments, current rent out of state and our normal bills and are considering simply letting it go into foreclosure. We realize that it will stay out her credit report for 7 years but were interested what else is involved? Will we have to go back to MI for court if we simply tell the mortgage company we 're not contesting it, or even sent them a quit-claim deed? We hate this as a solution to this problem and we are simply looking to see what the process will entail and if there is anything we can do to make it simply go smoothly.
Sending the company a quitclaim deed – you mean giving them the title to the property in Michigan?
no, I simply mean letting them know that we have no interest in fighting over the property...perhaps a deed in lieu of forclosure is an option for me also in michigan?
welcome azumel,
sending the company a quit claim deed will only let them get title of ownership on the property. but as debtors, you will have to clear the home loan. otherwise, your wife's credit report would reflect that she has been unable to pay off the loan and that will bring down her score.
sending the company a quit claim deed will only let them get title of ownership on the property. but as debtors, you will have to clear the home loan. otherwise, your wife's credit report would reflect that she has been unable to pay off the loan and that will bring down her score.
Ok, I get it now. As you say, the deed-in-lieu can be an option for you in Michigan. It means that you will be transferring your property ownership through quitclaim and hand it over to the company. The company will then sell the property and then retrieve what they have invested in offering you the loan.
Hi Azumel,
It depends upon the court as to whether you need to attend any session and speak about your having no interest in the property.
Deed-in-lieu is a good option. But you can also consider a short sale. By the short sale process, you will be selling the property at a price lower than what you owe on the mortgage. Both the processes prevent the lender from paying the high costs of foreclosure.
As far as your credit score is concerned, it will come down when you go for a deed-in-lieu but the damage won't be as much as in foreclosure.
Hope this helps...
Samantha.
It depends upon the court as to whether you need to attend any session and speak about your having no interest in the property.
Deed-in-lieu is a good option. But you can also consider a short sale. By the short sale process, you will be selling the property at a price lower than what you owe on the mortgage. Both the processes prevent the lender from paying the high costs of foreclosure.
As far as your credit score is concerned, it will come down when you go for a deed-in-lieu but the damage won't be as much as in foreclosure.
Hope this helps...
Samantha.
