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My MIL lives in Michigan and fell own some tought times. She lost her job and didn't make payments for over a year while living in the house before the bank started the foreclosure process. She just recieved a letter in the mail saying the mortgage has been paid off. She called the lender and they didn't give her very much information. All they told her was the bank paid off the loan to wipe it off their books for tax purposes. She is going to call someone today tot get more answers.
My question, has anyone heard of this and what is the next step? Does the bank own the house? Will they sell it to her for less than she owed (market value for MI)? She was going to get an apartment this weekend but now doesn't know if she should continue living in the house. She would definitely be willing to buy it (has had a job now for almost a year) if the bank sold it to her for a good deal. It needs a lot of maintenance, so if they don't, she'll just walk away and probably look at moving a better state than MI.
how is she going to get a new loan to buy anything since her credit is going to be ruined. Unless of course you mean she wil buy it with cash? Then you wonder if she had cash then why not pay the mortgage lol.
Seriously, the bank owns the home your MIL lives in. She will get evicted. It's only a matter of time before she gets the official notice.
1. She hasn't paid the mortgage in over one year. And you expect the bank to resell the home back to her?
2. You expect the bank to resell the home back to your MIL at a much lower price than she owed?
You mentioned she'll walk away if she doesn't get a fair market offer from the bank? What exactly is she walking away? She was a glorified renter to began with. To me, she really never owned the home. I bet she didn't have much of a principal downpayment and/or took out home equity.
I'm not trying to be harsh here. But the statements you made just made me think people feel entitled to everything.
Say you owe 200K on a mortgage. Now the home is worth 100K (probably worth much less in some parts of Detroit, MI). So you default on a 200K mortgage and want to rebuy the home back at 100K? That's crazy thinking.
Well, I don't have all the details. But she spoke with her attorney today. The attorney said it has to do with back taxes that she owes. She is either going to leave it or work with the county to pay the minimal taxes (same she would pay on rent) so she can't be foreclosed on right away.
I would live there till I got an eviction notice then go rent something cheaper. Renting an apartment will be so much more simpler for a single woman - no maintenance.
She may need you to co-sign on her lease since her credit is shot. Caution - if you cosign don't let her screw up your credit also.
I would go ahead and plan ahead. If hse is actually evicted then she wil be rushed and that is hard on older people. Coud take sometime to find a suitable apartment.
.. the next step? ....She would definitely be willing to buy it (has had a job now for almost a year) if the bank sold it to her for a good deal. It needs a lot of maintenance, so if they don't, she'll just walk away and probably look at moving a better state than MI.
PokerMunkee - what you are looking to do is a loan modification. I see these types of situations everyday. Noting Michigan is a Non Judicial state, plus not paying on the property for a year. That's telling me the bank does not want your property. Non Judicial states normally - a lender can auction the property in 4 to 6 months without going through the court system.
There are cases of people not paying their mortgages for up to five years and are still living in their homes. If you want to keep the property, there is a way.
As for the other posts above - you credit score is not a factor. The only requirement is having a household income.
You don't list to much information, it is obvious the property is upside down. One option could be requesting a short pay (depending on your lender reduction of principle, and restructure of the loan). What you need to do is negotiate a fresh start loan, but first you need to come current with your back taxes and insurance.
Do not go to a bankruptcy attorney - they do not have the experience with actual loans. Although they would be able to file paperwork at your county court house stop a sale.
It is obvious your lender does not want your home, so this is possibly the best time to mitigate. You need a mortgage attorney to negotiate a loan that benefits you.....
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