Legal Question in Real Estate Law in Michigan
my mother got a loan for a home for my sister and I, she passed away last september, the loan was 3 years old. The property was appraised at 75,000 and after down payment, the loan was secured for just shy of 50,000. My sister and I tried to keep up payments and utility payments, and were successful until May, unfortunately the mobile home that is on the property is over 40 years old, and the utility bills are outrageous. There is no way that we can continue to make loan payments and keep the utilities on (heat and electric, we do not have phone or cable). Would like to somehow keep the property, but would need some other kind of housing on property. The bank is willing to sign the loan over to my sister and I, but only for the amount owed plus about 5,000 more for closing and arrearages, taxes, etc, and raise the payment that we were already having difficulty with 50.00 monthly, but this is not an option without living circumstance change. THis house is falling down around us. About a month ago, we told them that we would not be able to assume the loan under their conditions, so they said that they would forclose. My mothers house is in probate as is this property until they are sold, my questions are 1. Do we have any options? 2. Can they foreclose before the estate is settled? If so, how long do we have before we have to vacate? 3. Does this go against my mothers estate? 4. Do you know of any other alternatives that would allow us to update living conditions and keep property? Any advice would be greatly appreciated. THank you.
1 Answer from Attorneys
The bank can move forward to foreclose regardless of who the legal title owner is, which is what the probate matter is essentially about. The bank has to give certain written notices then they can foreclose by advertisement which means they post at the subject property and then put an ad in the local newspaper for three consecutive weeks. Once that is done they will sellt he subject property at a sheriff's sale. The borrower has a 6 month redemption period and after that any occupants of the subject property can be evicted. There is typically a deficiency between what is owed on the loan and the amount obtained from the sheriff sale. This is called a deficiency balance and the bank can seek this from the borrower, in this case your mother's estate. You can try to arrange for a deed in lieu of foreclosure; a short sale or a loan modification that actually works. Worse case scenario you can always file for Bankruptcy to avoid the deficiency balance. The first three options could save your home if they work but the Bankruptcy will not. Aldrich Legal Services, PLLC specializes in Real Estate law, along with Bankruptcy, Probate matters, Family and other areas of the law. If we can be of service to you please visit our website at aldrichlegalservices.com or call us directly at (734) 404-3000. We provide free consultations!
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
