Legal Question in Real Estate Law in Michigan

Re: Entering Fourclosure

Presumably, you mean that you alone signed the promissory note and mortgage document, and your wife did not sign the promissory note. It is the promissory note which makes someone liable for a loan. The mortgage certificate is what is filed with the county register of deeds, to establish the right of the lender to have a lien against the property.

The mortgage lender (i.e., the bank) cannot hold your wife liable for the debt, and therefore, under the credit reporting laws, her credit should not be affected by a foreclosure of a mortgage. If the lender improperly reports the debt as being a debt of your wife, she may object to the report and take certain steps under the law to have the report corrected.

There is no reason to remove your wife from the title, under the facts as you have stated them. She should remain on the title, to protect her interest in the land. If the lender forecloses, and if upon a sheriff's sale the property sells for more than the amount owed to the lender and all lien holders, she (and you) may be entitled to receive those excess proceeds. She should not change her ownership, unless advised to do so by an attorney who can analyze her and your circumstances more fully than is possible in this website.

This response is not intended as legal advice. Your rights and obligations will depend upon the particular facts and circumstances affecting this matter. You should consult an attorney in your area to discuss all of the relevant facts and circumstances. No attorney/client relationship is created as a result of this response. I may be contacted at 248.788.8225, to discuss this or other legal matters.