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Old 08-04-2010, 11:58 AM
 
1 posts, read 1,093 times
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My cousins' wife left him last year and he contintued to stay at the house. She suggested he walk away, but he didn't want to do that. Well a year later, his unemployment is about to run out, and no job yet. He is current with his mortgage now, but he doesn't see a way out now---they owe much more that it's worth and it needs plenty of work done too. Does anyone know what would be his next step in this terrible situation? Or whom to contact in the city of Detroit?
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Old 08-04-2010, 12:59 PM
 
Location: FLINT (yeah you read that right!), MI
336 posts, read 908,089 times
Reputation: 166
Well, he could sign the house over to the mortgage company which would be better for his credit rating than going through foreclosure. However, he needs to make sure that the bank will not come after him for the difference once/if the house sells. Make sure its spelled out as such in the contract. Or he could declare bankruptcy. If I understand correctly, if he dosen't reaffirm the debt on the house he can continue to live in it as long as he's making payments to the bank. However, he can also walk away from it at any time without further penalty since it was included in the bankruptcy. (Didn't sound right to me at first either, but that's what my brother's lawyer told him.)
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