First need to say;
I'm in a field where there's a lot of controversy, most people to do not understand entirely what we do to help people. Every situation is different. People are skeptical based on wrong information they hear/read based on a negative statements that is giving everyone in my field a bad name. For every one bad case - I can show 100 cases where it did work. There are people that want to help others, I truly believe in one hand washes the other, and what comes around goes around.
I realize many people are not computer literate. Advising you to be careful on what information your are posting, and what information you keep private when on the internet.
Now that I said that - lets discuss what is on the table for you.
The state of Michigan is a non recourse state. Which means if you don't pay your mortgage, the 1st lender gets your home back. This way helps protect you a getting hit with a deficiency judgment later when the property does sells for less then the actual balance.
The correct way ton settling on a 2nd, it is best done when you are working on settle on the 1st mortgage. If you wait till last point to work opn this, then your 2nd can pursue you in civil court under a breach of contract claim. It talkes about a year for your caseto the courts. Once there is a judgment rendered, it is next to impossible to negotiate a lower amount.
Also noting Michigan is one of the hardest hit states for unemployment and home values dropping. I am willing to bet you owe more on the property that is is worth. Because of this - it can cost the lender $40k plus in fees to foreclose on a home. Why would a lender put something into something that is not worth it? This is the most likely reason why nothing is happening. When the value returns and banks can sell the properties for a profit. That is most like when when a foreclosure takes place.
Sorry to disappoint you - you not paying in almost two years, it doesn't break any records. I work with people that are behind 60 months and still living in the home.
Next - I want you to understand there is a difference between the states on how property's are foreclosed upon. Some states are Judicial, which the Lender has to go through the court system. Which can average 12 to 18 months before a home is sold and person is evicted. Where non Judicial states - if the homeowner misses only four payments, on the 1st day of the fifth month the sheriff is posting a trustee notice to evict. In either case - the value vs the loan amount is the major on how fast a Lender moves.
Lets me work on what you gave me so far - you have a 1st and 2nd mortgage on a property that you no longer want - in another state.
One of my first questions is who is your lender(s) (certain Lenders are easier to work with). Next what is the value? You need to determine how much up side down you are. Again the value determines how fast a Lender is going to work. Living where you are now - what is your financial situation like? The point of all this is to determine if you qualify for a Deed in Lieu. This can to allow you to walk away from the property free and clear.
The reason why I am mentioning a Deed in Lieu - you have a ready tried a short sale and it has not sold. They are great in a selling economy, right now they are a waste of time. Why, after three months a property can continue into foreclosure. You your case nothing has happened, but right now the ball is in your Lenders court. When they want to, it is up to them to foreclose on your home. A short sale others no protection - but if the home does sell this is the cheapest way to go.
Something really important - having a Foreclosure on a credit report can last for up to 10 years. It will put you so far into a hole, no one is going to help you. Right now your credit is last priority, I can tell you later on what to do get your score up quicker.
When you go through a Deed in Lieu of Foreclosure - two things happen at the same time. A loan modification is attempted to show you can no longer afford the property. Also a short sale will be attempted to sell the property. It is hard to do and you own, the best results are working through a mortgage attorney.
Here's two examples -
Recently we tried a Deed in Lieu for a family in Illinois - where a father cosigned for his daughter, using their income and expenses. They were looking to walk away from the property. On paper it showed they could not afford the payment. After the fact it - the bank had information the Grandfather was living there (that was not disclosed earlier with us). Using his SS income, the bank said there was enough income to support a loan modification. They ended up with doing a loan modification with a lower payment.
Another case concerning a Deed in Lieu - parents living in Georgia, cosigned for their son's home in New Jersey. Their son lost his job, the wife wasn't working and they had two children. Behind 8 months on the mortgage, there was a divorce and the son moved back to Georgia. It was proved there was no income to support the loan, and a deed in lieu was granted.
If your goal is to walking away free and clear, this...
.... have some clients coming into the office - will try to get back to this later...........
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