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Old 10-17-2009, 01:46 AM
 
16 posts, read 25,702 times
Reputation: 19

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Quote:
Originally Posted by Sparrow_temp View Post
I had to do the same thing. Well, technically I had the option of staying in MI but chose to move to NM (job offers came back to back). The job was not really a paycut but I had to pay both rent and mortgage for 9 months while watching property values go down by the day.

But to answer your question -- no I wasn't talking about anybody who was forced to move for work or simply couldn't find work. I was pointing fingers at those who were living beyond their means, owning way too much house for their income, and simply hoping that property values would continue to go up while interest rates stayed flat. And then borrowing money against their unrealized profits from their house to further live beyond their means.

And it really urks me that these people then get to walk away from debt, get government help, all at the expense of those who did things right. These people don't have to pay tax on any debt forgiveness and I don't get to declare any losses on my tax return. I'm not sure how that's fair.
Sure some have gotten heloc`s,but Michigan was not the case.I took one big hit and lost all my lifetime savings because of stupidity.Some banks have made a lot of money and some people too.This is going to be a one time deal for all the fraudsters,because there will be nobody that will sink any money like they used to.
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Old 10-19-2009, 09:24 AM
 
539 posts, read 1,197,532 times
Reputation: 275
I realize that MI is indeed a RECOURSE state, but my question is do banks TYPICALLY go that route, and has anyone had any experience with it
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Old 10-19-2009, 10:10 AM
 
Location: Northern WI now - sorry MI, I tried
137 posts, read 227,342 times
Reputation: 113
I don't think you will get the answer you want because banks have not gotten through the first wave of foreclosures yet. It will probably take two to three years before they can catch up then prepare for an attack. In addition, they probably know that most people who's home is in foreclosure today, will, hopefully be working again somewhere in two years, so at that point, run a TRW and file with the court. I have the same concern as I am in the same situation with my home. I am currently still unemployed and I am in the fourth month of the redemption period, before I get booted out. I fear the letter from the court in two years asking for payment terms for the difference. I didn't create this, but have a bad feeling I will pay dearly for it.
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Old 10-19-2009, 12:32 PM
 
539 posts, read 1,197,532 times
Reputation: 275
Quote:
Originally Posted by junior 88 fan View Post
I don't think you will get the answer you want because banks have not gotten through the first wave of foreclosures yet. It will probably take two to three years before they can catch up then prepare for an attack. In addition, they probably know that most people who's home is in foreclosure today, will, hopefully be working again somewhere in two years, so at that point, run a TRW and file with the court. I have the same concern as I am in the same situation with my home. I am currently still unemployed and I am in the fourth month of the redemption period, before I get booted out. I fear the letter from the court in two years asking for payment terms for the difference. I didn't create this, but have a bad feeling I will pay dearly for it.
Thats a good point! It probably hasn't dawned on people that the banks will revisit all these foreclosures in the future, for possible litigation.
Have you asked the bank for a short sale in leiu of a foreclosure? I plan on calling them this week to discuss options. I will keep you guys posted.
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Old 10-19-2009, 04:00 PM
 
Location: Northern WI now - sorry MI, I tried
137 posts, read 227,342 times
Reputation: 113
Yes, I am attempting a short sale currently. I have an offer that was presented to the banks lawyers, but it is up to them to accept or deny the offer. I am trying though. I worry the second will require 10% + half owed to clear the title for which I am hosed. No job, no place to live and no way to come up with the $$$$ they need to allow the short sale to go through. Instead, they will force it into foreclosure (because I lost my engineering job in the auto industry and cannot pay) and sue me two years from now. Perfect.
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Old 10-19-2009, 04:15 PM
 
Location: Grosse Ile Michigan and Sometimes Orange County CA
15,819 posts, read 31,996,766 times
Reputation: 11836
It depends on the bank, it depends ont he amount due, and it depends on you.

If you are solvent and have easily collectable assets, and if the amount is enough to be meaningful, then the bank may well pursue the balance. They also may elect to obtain a judgmeent and just let it sit there and come after you later. They may also sue you later (they have six years to sue on a written contract).

if the balance is under $25,000 it is not terribly likely that they will mess with it. If you are uncollectable, they may not bother either. Some banks are more aggressive than others.

My brother lost his house a year or more ago. The bank has done nothing with it. It has decayed since the left the doors open. they have not pursued him and the reasons are obvious. First until they sell the house, they do nto know what it will sell for and cannto claim a deficiency. Second they caused it to devalue by leaving the doors open. Third, they do not know where he is. Fourth, even if they got a judgement, the could nto get enough money from him to cover the cost. Fifth they have bigger, more collectable fish to fry.


Thus, it varies.


If your question is whether any banks ever go after people for deficiencies, then answer is Yes they do. At least some banks, sometimes pursue the deficiencies.
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Old 01-21-2010, 11:43 PM
 
2 posts, read 11,142 times
Reputation: 12
I am in the same boat here.
my wife had a house in troy as her primary residence. she had to relocate to arkansas
the house lost 40% value. Even though she a renter in the house. she does not want to continue paying perpetually depreciation asset. She purhased another house in arkansas. Even though she can manage to make payment on both houses, what is the way out of this mess?
there is no light at the end of the tunnel.. please.
if foreclosed, will they come after her?? we are not concerned about the credit.. please help.
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Old 01-22-2010, 06:02 PM
 
Location: Los Alamos, NM
682 posts, read 921,767 times
Reputation: 459
Sell the house and assume the loss. I had to when moving from MI to NM. Why should the bank assume all of it when the law in the State of MI says that they have the right to come after you for the difference? Every person who gets away with this will simply cost us all more in the future.

Quote:
Originally Posted by tracko View Post
I am in the same boat here.

the house lost 40% value. Even though she a renter in the house. she does not want to continue paying perpetually depreciation asset. She purhased another house in arkansas. Even though she can manage to make payment on both houses, what is the way out of this mess?
there is no light at the end of the tunnel.. please.
if foreclosed, will they come after her?? we are not concerned about the credit.. please help.
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Old 01-25-2010, 09:33 PM
 
1,828 posts, read 2,917,566 times
Reputation: 596
Assume the loss? lol You have to be kidding, I dont think people can assume 60k to 200k in a loss. I will be in the same boat sometime this year and my plan is to walk away as well. I refuse to put my savings into something that isn't even worth half of what I bought it for. I have made every payment in my life up to this point and thanks to the BANKS and Wall Street we all got screwed big time. If they come after me at a later date I guess it will mean bankruptcy. This has nothing to do with not wanting to pay it either. I would stay here if a job was around the corner but we all know we live in Michigan and jobs are non existent.
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Old 01-26-2010, 11:10 AM
 
Location: Cumming, Georgia
784 posts, read 1,949,880 times
Reputation: 302
It happened to one of our friends here in Grand Rapids...they sold their house by short sale back in June of 2007 (it was being foreclosed on). Several months later, they landed new jobs in Northern California. They didn't want to move but had no choice with this economy.

Just before Christmas 2009, one of the banks came to them and asked for the balance of the loan. They are still negotiating with lawyers today. It was a surprise and they weren’t expecting it at all. They left the house in a great shape, even mowed the grass on the day they moved out.

Yes, they will come after you at some point.
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