Legal Question in Real Estate Law in Michigan

Re: Deed-in-lieu of foreclosure

It sounds like you are getting bad information or bad advice from someone about a deed in lieu of foreclosure. That is not a decision you can arbitrarily make on your own, but it would have to be by agreement with your mortgage company. If the mortgage company sells your house for less than you owe on it, you owe the deficiency and yes, you can be sued for the deficiency. If the house is damaged while uninsured, you are responsible. Can you add the mortgage company to your list of unsecured creditors by an amendment? If they are not on your list of creditors (Schedule F), you are liable for the deficiency even if you did not sign a reaffirmation agreement.