U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Michigan
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 10-15-2009, 09:27 AM
 
539 posts, read 1,192,569 times
Reputation: 275

Advertisements

I've read about judicial judgment action banks can take after the sale of a foreclosed property with the ability to seize assets (cars) and garnish wages. Has this happened to anyone in recent times given the climate of the foreclosure market? I've read typically they will on 2nd mortgages or in case of fraud, or where the homeowner has the funds to pay. But has anyone had any experience or heard about this? I live in AZ and my MI home was in foreclosure, until I was offered a re-modification that basically came back with a payment that has higher than the initial payment. I just can't pay it, and don't have renters anymore. I feel like my only option is to let the house go, but I'm scared to death of being sued
Reply With Quote Quick reply to this message

 
Old 10-15-2009, 09:33 AM
 
Location: Michigan
1,201 posts, read 1,859,919 times
Reputation: 485
They tried to sue my neighbor after he walked away from his house. He filed bankruptcy and that was that.
Reply With Quote Quick reply to this message
 
Old 10-15-2009, 10:05 AM
 
189 posts, read 345,760 times
Reputation: 138
This is a real concern of mine as well... my renters have stopped paying me, and are moving out, and I'm not having much success finding another renter. Foreclosure seems inevitable (and frankly, it's also the easiest route I think), but bankruptcy is something that I'd really like to avoid. As of next week I'm not going to have any unsecured debt, we're making things work right now so I don't need to declare bankruptcy, but I'm definitely not making enough money to pay two house-payments.
Reply With Quote Quick reply to this message
 
Old 10-15-2009, 06:52 PM
 
Location: Los Alamos, NM
682 posts, read 916,853 times
Reputation: 459
I don't think they normally do -- I have relatives who have let their property get foreclosed and the bank did not come after the difference. Unless the owner is unemployed, I kind of think they should though. I have sympathy for those that got layed off but not so much for those that made poor financial choices and are in effect getting a bail out.
Reply With Quote Quick reply to this message
 
Old 10-16-2009, 09:45 AM
 
189 posts, read 345,760 times
Reputation: 138
Quote:
Originally Posted by Sparrow_temp View Post
I don't think they normally do -- I have relatives who have let their property get foreclosed and the bank did not come after the difference. Unless the owner is unemployed, I kind of think they should though. I have sympathy for those that got layed off but not so much for those that made poor financial choices and are in effect getting a bail out.
How about those of us who have had to move out of state (taking on another rent/mortgage payment) in order to find that work?

This is the second time I've done this. The first I spent six months making both payments, putting the rest of my bills on credit cards, and it almost tore my family apart. I left a great job, took a huge pay cut, but managed to keep everything together (and move back to Detroit). That won't happen again. This time if it comes down to saving my credit or feeding my family, the place in Michigan is going to have to go.
Reply With Quote Quick reply to this message
 
Old 10-16-2009, 10:10 AM
 
47,586 posts, read 35,285,110 times
Reputation: 21570
I don't think foreclosing lets someone off the hook. A house selling at a foreclosure auction will likely be sold for less money and the borrower made a legal agreement to the bank.
Reply With Quote Quick reply to this message
 
Old 10-16-2009, 10:23 AM
 
539 posts, read 1,192,569 times
Reputation: 275
Quote:
Originally Posted by malamute View Post
I don't think foreclosing lets someone off the hook. A house selling at a foreclosure auction will likely be sold for less money and the borrower made a legal agreement to the bank.
Well thats what I'm trying to figure out. Is if they seek a judicial judgement for the remaining balance.
I had to move out of state for a job, and I can NOT afford to pay rent here and a mortgage there for a empty house. This really sucks to be in this prediciment and its definately not something done by choice. I just don't want to face wage garnishments in the future
Reply With Quote Quick reply to this message
 
Old 10-16-2009, 02:27 PM
 
47,586 posts, read 35,285,110 times
Reputation: 21570
Quote:
Originally Posted by trudawg View Post
Well thats what I'm trying to figure out. Is if they seek a judicial judgement for the remaining balance.
I had to move out of state for a job, and I can NOT afford to pay rent here and a mortgage there for a empty house. This really sucks to be in this prediciment and its definately not something done by choice. I just don't want to face wage garnishments in the future
Maybe it depends on where you live now -- what if you got a mortgage where you live while your credit is still good before you let go of the other house. I don't know if some states would garnish wages for houses foreclosed in other states.

I don't know what people can do when they have no jobs. Globalism is not grand.
Reply With Quote Quick reply to this message
 
Old 10-16-2009, 03:58 PM
 
188 posts, read 387,548 times
Reputation: 90
You sound like very intellgent people. You can esily search on the web for your answer if you know what to search for. You need to seach to see if Michigan is a recourse state (yes it is). Can they sue you, yes. Will they, now that depends, if the loan is with the VA yes they will, FHA will not, commercial banks will likely sue you although it may be two years down the road. It does not matter where YOU live it matters where the HOUSE is. Yes a Chaper seven bankruptcy will eliminate this debt.
Reply With Quote Quick reply to this message
 
Old 10-16-2009, 07:57 PM
 
Location: Los Alamos, NM
682 posts, read 916,853 times
Reputation: 459
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.

Quote:
Originally Posted by MTUCache View Post
How about those of us who have had to move out of state (taking on another rent/mortgage payment) in order to find that work?

This is the second time I've done this. The first I spent six months making both payments, putting the rest of my bills on credit cards, and it almost tore my family apart. I left a great job, took a huge pay cut, but managed to keep everything together (and move back to Detroit). That won't happen again. This time if it comes down to saving my credit or feeding my family, the place in Michigan is going to have to go.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2011 data
Loading data...

123
Hide US histogram


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Michigan

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top