Legal Question in Real Estate Law in Michigan
Our home was lost to foreclosure, in the state of Michigan, one and a half years ago. Are we still responsible to pay for the $5000. home equity loan that we had on it?
2 Answers from Attorneys
Short answer, yes, you are still responsible under the promissory note.
Probably not if the home equity loan was a second mortgage. The second lender was notified of the foreclosure. The only way that the second lender could protect its interest in your property would have been to be the highest bidder in the foreclosure. This is not likely to have happened, and it is likely that your second lender just "charged off" your debt. This will show up on your credit report. You would have probably heard from that lender by now, if they planned on pursuing any personal recourse under your note.