Legal Question in Real Estate Law in Michigan

foreclser

My girlfreind had her house forclosed on about a year ago. She had an equity loan on the house. She is still paying on the equity loan. Is she responcable for this loan?


Asked on 9/20/08, 4:01 pm

1 Answer from Attorneys
Renee Walsh LawRefs Nonprofit

Re: foreclser

If the house was foreclosed upon and from the sale, the equity lender did not receive payment because there were insufficient funds to pay off the second mortgage (which is typical), then, yes, she would still be obligated on the loan. However, the house could not be sold because of the lien held by the second mortgage holder. Therefore, there would be some bargaining power to negotiate a short sale, which is now common in this economy.

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Answered on 9/21/08, 10:45 pm


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