Legal Question in Real Estate Law in Michigan

Forclosure

I own two Single Familie Homes in different States. One in Iowa, One in Michigan. I relocated to Michigan 4 Years ago and since then have been making two House Payments. I am almost out of my Resevers and am thinking to let the Bank Foreclose on my Iowa Property. I am current on all payments as of right now. What would happen to my Credit and could this affect my Michigan Property, Car etc.

Thank you in Advance


Asked on 8/16/07, 3:24 pm

1 Answer from Attorneys
Victoria Easterday Law Offices of Victoria Easterday

Re: Forclosure

Your credit would be damaged by a foreclosure some say just as much as a bankruptcy does. Foreclosure would have no affect on your house in Michigan or other property you have in Michigan. Be advised that many mortgage companies are giving 1099 to those who leave a deficiency owing on their mortgage by a foreclosure or deed in lieu of foreclosure.

You may want to negotiate a deed in lieu of foreclosure with your mortgage company. This is a process whereby the mortgage company accepts a deed from you to the real estate and foregoes a foreclosure action against you. This also adversely affects your credit, but not as much as a foreclosure. You may also try to negotiate no 1099 being generated as part of the deed in lieu of foreclosure negotiations.

Read more
Answered on 8/16/07, 7:23 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Michigan