Legal Question in Real Estate Law in Michigan

There's a lot of analyzing that needs to be done in a situation such as this to provide you with a thorough analysis regarding all angles of your situation. It is not a yes or no question, or something that can be answered with just the facts given. It's like asking, "can i file bankruptcy?" that questions means a hundred things. Your best bet is to have a 1-hour meeting with a lawyer to discuss all your issues, determine what, if anything, needs to be done at this time, discuss your future - such as how long you'd be able to stay in the house without paying anything, whether bankruptcy is an option for either or both of you, whether applying for a loan modification is even worth it, etc. Your situation re: the value of your house is just like 90% of other people in Michigan. Yet, the government still taxes us as if our houses were worth half a million.

Generally, when people "walk away" from a house, let it go into foreclosure, or whatever the case may be and then the house sells for less than the loan amount, the mortgage company does not attempt to recoup any money from the owners. Even if they wanted to, there is a very complex and high standard that the mortgage company must overcome to hold an owner (prior owner/note holder) responsible for any shortall. In sum, NO, they won't sue you and you won't have to pay anything. Even if you were one of the 0.0000000000001% that got sued, they wouldn't prevail unless than can demonstrate YOU were the reason the decline in value of your house. In other words, unless you burn your house down, you have nothing to worry about.

Yes, a foreclosure will show on your credit report/record just like anything else negative. The credit report rules are all changing and have been changing the past year with everyone having bad credit, foreclosures, repossessions, and bankruptcies. Within a few years, the average credit score will be 550, versus 700. You can't worry about your credit score - it is entirely overrated. Your utmost concerning is being able to have some housing, food, and medical needs for you and your family.

I can provide you with a consultation for a very small flat fee and determine if you need to do anything now, and plan ahead for what's to come. Do not surf the net or listen to other people's stories and lose sleep - everyone's situation is different, and unless you're getting advice from a lawyer, it's useless gossip.

Please feel free to contact me if you'd like to meet. I specialize in bankruptcy and advising people regarding loan modifications, mortgages, and all financial issues. An in-person meeting will give you the chance to ask those specific and intimate questions that you can't possibly identify here, and I can provide you with guidance for your future. Thank you.

I have made a video on www.YouTube.com on this very issue. Visit that site and search: tkliszesq for the video. Also you can visit www.kliszlaw.com to contact me directly to discuss. Tim Klisz