Legal Question in Real Estate Law in Michigan

foreclosure
Under the new law, if I foreclose on a house that I have an equity loan on, can they file a deficiendy? What happens at tax time? I am in over my head and currently have great credit, but just found out my foundation is in need of expensive repair and I have mold. I already owe $20k more than the house is worth. Please Help!! I just want to move back home and pay my debt off and a fraesh start one day when my credit is good again. Can someone please tell me if this new law Bush passed will offer protection from severe consequences? Will I just end up with zero credit, or how many points does this take off my score?

Asked on 2/20/08, 11:10 pm

Stuart Collis Collis, Griffor & Hendra, PC

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Re: foreclosure

As long as the debt is written off, you do not have to report the excess debt as income from a 1099, as I understand the new law.

Answered on 2/20/08, 11:15 pm

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