Legal Question in Real Estate Law in Michigan

Straight up renting is also an option. Probably the best one. What if you sell and the values go up later? You will have lost out. I often recommend renting in your kind of case. Visit www.kliszlaw.com to discuss. Tim Klisz

Your mortgage contains a "due on sale" clause, usually paragraph 17 but I have seen this numbered as 18. This clause prohibits you from selling the property without paying off the mortgage, this means you may sell on a land contract, but you still have to pay off the mortgage. A lease with an option should not pose a problem, so long as the lease is not for more than 1 year. Be sure that you are paid for the option at the time of contracting for the lease/option. BUT, you need to know that as soon as you vacate the property and rent it out, it is no longer your homestead, and your property taxes will at least double, depending on how low your capped value is at this time. If you are still working, and you permit your property to go into foreclosure, the bank will eventually take the house, sell it, and charge you for the deficiency. So if you owe $100K and the bank sells the property for $50K, the bank will sue you for the difference. Bank owned properties sell for much less than private owner properties, because the banks do not take care of the properties, because the banks have no incentive to take care of the properties. I don't know why you believe that a land contract buyer or a lease/option buyer is going to pay you more than fair market value for your property. These buyers are generally people who have bad credit, no money, no job, a nightmare to get them out of the house. If they had a job, good credit, a down payment...they would just go out and buy a house. A nice house. I have 30 years of experience as a Realtor. Best advice: hire a good, local, reputable Realtor, try to work out a short sale with the bank if the house is worth less than the mortgage amount. Do this soon. The market drops dramatically by Christmas.

Your mortgage contains a "due on sale" clause, usually paragraph 17 but I have seen this numbered as 18. This clause prohibits you from selling the property without paying off the mortgage, this means you may sell on a land contract, but you still have to pay off the mortgage. A lease with an option should not pose a problem, so long as the lease is not for more than 1 year. Be sure that you are paid for the option at the time of contracting for the lease/option. BUT, you need to know that as soon as you vacate the property and rent it out, it is no longer your homestead, and your property taxes will at least double, depending on how low your capped value is at this time. If you are still working, and you permit your property to go into foreclosure, the bank will eventually take the house, sell it, and charge you for the deficiency. So if you owe $100K and the bank sells the property for $50K, the bank will sue you for the difference. Bank owned properties sell for much less than private owner properties, because the banks do not take care of the properties, because the banks have no incentive to take care of the properties. I don't know why you believe that a land contract buyer or a lease/option buyer is going to pay you more than fair market value for your property. These buyers are generally people who have bad credit, no money, no job, a nightmare to get them out of the house. If they had a job, good credit, a down payment...they would just go out and buy a house. A nice house. I have 30 years of experience as a Realtor. Best advice: hire a good, local, reputable Realtor, try to work out a short sale with the bank if the house is worth less than the mortgage amount. Do this soon. The market drops dramatically by Christmas.

Shelly Schellenberg MI & FL

private practice

Traverse City, Michigan

Tampa Clearwater St. Pete, FL 34695