Legal Question in Real Estate Law in Michigan
Foreclosure
I lost my job in Jan. 2008. I have remained current on my mortgage payments until now. We have our house listed, but market value is $40K or more under what we paid. I cannot continue to pay the monthly payments since it will soon deplete all of my emergency savings. I wrote a letter to our bank a few weeks ago, but haven't received any response so far. Why shouldn't I just stop house payments and go into foreclosure?
2 Answers from Attorneys
Re: Foreclosure
Your situation is a great example of the benefits of a short sale, if one can be addressed, and an ability to negotiate for a settlement on your debt. You need to meet with somebody who has experience in short sales and can address with you and your Realtor the best approach to obtain and negotiate an offer.
A short sale would provide satisfaction on the debt and prevent the mortgage company from coming back on you at a later date on the deficiency amount. www.SevickLaw.com
Re: Foreclosure
You could save yourself some aggravation if you can work out a short sale or give the mortgage company a deed in lieu of foreclosure. Neither option is really much better on your credit, but it would get rid of your house.
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