Legal Question in Real Estate Law in Michigan
Real estate question
I put my house on the market last summer and moved from Michigan to Oregon because I was about to get laid. My real estate agent received an offer on the house, she told me this morning that because I had a second mortgage the banks wouldn't agree to a short sell. The offer was for $24,900, but the real estate agent says that I owe nearly $90,000 between the 2 mortgages. The first mortgage company will accept $17,000 for a payoff, which only leaves $1,000 for the second bank. My real estate agent advises me to get the second bank to agree to accept $1,000 for a $28,000 balance and allow the deal to go through. If they won't agree, I can't sell the house and my agent says that either bank will be able to garnish my wages or take my retirement someday. I will owe nearly $90,000 on a house barely worth $25,000. I need advice now because I probably won't be able to get the second bank to agree to settle for $1,000. I'm looking for work, but since the banks will confiscate my earnings, probably for the rest of my life, there is no advantage in even working at this point.
2 Answers from Attorneys
Re: Real estate question
I agree with Ms. Hoenig that bankruptcy is the choice for you under the circumstances. Consider discontinuing your payments and setting up an appointment with a bankruptcy attorney. If you would like further information, please contact me via my website at www.lawrefs.com.
Re: Real estate question
While I'm sure this isn't your first choice as far as what to do to come out of this without being underwater, this is a situation where filing bankruptcy may be the best idea. I'd recommend consulting with a local bankruptcy attorney.
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