Legal Question in Real Estate Law in Michigan

possible forclosure

My Grandmother(68) has about $36,000 in credit card debt, and a $70,000 mortgage on her home. Her home mortgage is through a bank, but its a commercial loan, 5 year with a balloon. She went to refinance and the bank said, she either finds another financier or shes not going to like her new terms(higher payment with higher interest). She has never been late on any of her payments(house or cards). Seems like they would want to keep paying customers. Does this seem legal and appropriate? Times are bad and they seem to want to foreclose. Can anything be done? Thanks.


Asked on 10/23/08, 5:14 pm

2 Answers from Attorneys
Renee Walsh LawRefs Nonprofit

Re: possible forclosure

Your grandmother could file for bankruptcy and potentially keep the house by reaffirming the loan.

Interesting that she has a commercial loan on a residential property (if that is indeed the case). This may be a situation an attorney could look into to see if the terms of credit were fair to begin with.

If you have any further questions or concerns, please contact me via my website at www.lawrefs.com.

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Answered on 10/26/08, 9:59 pm
Lesley Hoenig Lesley A. Hoenig, Attorney at Law

Re: possible forclosure

Typically, when there is a balloon payment they need to have the balloon payment paid. I don't think yo can force the bank to work with her, but something your grandmother may want to look into is if she can get a reverse mortgage which would could possibly help her in this situation. Has she been to other banks to see if she can finance with someone else yet?

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Answered on 10/23/08, 5:20 pm


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