Please register to participate in our discussions with 2 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.
Wow....
That is pretty chilling.
I have heard of hard money lenders taking flip properties after giving impossible funding, but..... Jeeze...
What's worse is Michigan's tax foreclosure law--the worst in the nation. It's been on the books for nearly 20 years but hopefully a court will finally overturn it.
What's worse is Michigan's tax foreclosure law--the worst in the nation. It's been on the books for nearly 20 years but hopefully a court will finally overturn it.
My question is simple. If I take a 300k loan on a 400k hpuse. Assume I have paid 50k upfront and 25k in interest over few years. If the outstanding is 250k and if its foreclosed and they sell for 300k , what happens to my original 50k upfront that I paid? Do they keep the house as well as my home equity?
I can't answer your question but your Q confuses me a lot - If you have $250K loan and house can be sold for $300 why would you wait for Bank to foreclose it?
Again, that depends upon state law. Some states apparently require a return of extra equity, and some do not. Due to the fact that Michigan does not require a lender to compensate a foreclosed homeowner for recovered value in excess of the mortgage liability, we've had a problem with predatory lenders. A predatory lender purposely loans money--usually in a refinancing situation or on a house owned free-and-clear--with the hope that the homeowner actually loses the property through foreclosure, thereby recovering not just the loan amount, but any equity that the homeowner may have had.
I go one step further and conspiratory enough to think thw realtors and lenders may act in a way that house doesnt sell. As goldman says " sell i ng the most sophisticated product to the least sophisticated person/victim makes them easiest profits".
Just makng sure I m not paying over and above than wats loaned.
I can't answer your question but your Q confuses me a lot - If you have $250K loan and house can be sold for $300 why would you wait for Bank to foreclose it?
I mean in case I cannot get to sell it within a short time for 300k, bank may sell it for less or even for 300k.
My question is simple. If I take a 300k loan on a 400k hpuse. Assume I have paid 50k upfront and 25k in interest over few years. If the outstanding is 250k and if its foreclosed and they sell for 300k , what happens to my original 50k upfront that I paid? Do they keep the house as well as my home equity?
The reality of foreclosure is that the house is sold at auction. If nobody bids on it except the bank, the bank buys it for the amount of the balance. If anybody else does bid on it, it's likely an investor who will get it cheap.
Either way, if your house is foreclosed, don't count on getting any money back.
If you have any appreciable equity in your house and you can't afford the payments, sell it to preserve your credit.
Sheesh.
There oughta be a law... I mean, a REAL law.
It’s plain sickening:
This case is similar to one the Michigan Supreme Court has already agreed to take up. In that case, Uri Rafaeli lost his rental property to foreclosure in Oakland County after underpaying his taxes by $8.41.
This case is similar to one the Michigan Supreme Court has already agreed to take up. In that case, Uri Rafaeli lost his rental property to foreclosure in Oakland County after underpaying his taxes by $8.41.
You're a bit behind on this. The Courts have already ruled that it's an unconstitutional taking for a County to keep the excess proceeds from a tax sale. What the state legislature did to supposedly remedy this isn't fully satisfactory, but there have been no court challenges to the new state law. I'd write more to explain, but I don't have time now.
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.
Please register to participate in our discussions with 2 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.
