Legal Question in Bankruptcy in Michigan

She needs to retain a family law lawyer who is familiar with how to handle mortgages in today's market. It is a complex situation which requires a thorough legal analysis. Her husband can "say" anything he wants - that means nothing. That does not mean he can just walk away from the house, or any other debt, without consequence - or that the judge would enter a judgment to that effect. Again, it is very important for her to have a lawyer, as the terms of a Judgment are very difficult, if not impossible, to modify, especially when it comes to division of assets and debts.

One option is for her, or whomever is on the mortgage, to immediately submit a loan modification application to their lender. Most lenders have that information on their website. She should NOT "hire" someone to do her loan modification for her, or pay anyone to assist her - that is a total scam. Communicating with a lender is a good start. Since her credit is still not good, and if neither of them can afford the house and are unable to sell it, they may just wish to let it go into foreclosure, live there for free for a year, and then move on - there may not be any other choice if she can't afford it, or sell the house. She will not be held responsible for any shortfall or deficiency.