Letting house go in MICH> LAWS who knows????

indyrt

indyrt

Club Member
My friend is letting his house go. His main mortgage company (CHASE) decided to dump the loan when he was trying to get a home modification. They sold it to IBM which seems to be a dummy company for chase. THEN ol "trot n trot" gets involved.... 2 other friends said once trot was involved, they try to add 30K and make you sign.

I have heard they can't come after you in michigan. I heard from a real estate guy that says you do sign a personal agreement when signing a loan. They CAN come back on you but usually do not. HE put a lot of his own money and time into the home and wants to take some of it with him.
 
It says right on the loan modification application that they wont be foreclosed on during the process. Sounds like theres more to it...
 
He says that because chase took so long and stopped his payments, it automatically went into foreclosure mode.
He then ran out of time once the loan shifted hands. The second company was attempting the same.

I would guess that chase got their cash to keep their #'s looking nice and they shifted it to a dummy company which gets paid for their losses. Trot n trot probably gets their cut for inflating the numbers. It seems if you sign, they win and if you dont they win.

I would bet that he gets an offer to keep it PLUS thousands in fees. Thats their game
 
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theres always a richard cranium like frygy. Life must be perfect in your world. You must live in a bubble. If the can't make a payment and wants to lower his % rate... thats wrong? WTF

I take pride in watching people who are blind to the world and have big mouths when the hard times hammer hits them!!
 
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indyrt said:
theres always a richard cranium like frygy. Life must be perfect in your world. You must live in a bubble. If the can't make a payment and wants to lower his % rate... thats wrong? WTF

I take pride in watching people who are blind to the world and have big mouths when the hard times hammer hits them!!
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:lol: I've been hit with the hard times hammer already, I didn't walk away from any debt though. I just find it funny that you're on here complaining about the issues your buddy is having while he's trying to fuck the bank out of what he agreed to pay.
 
Fryguy302 said:
:lol: I've been hit with the hard times hammer already, I didn't walk away from any debt though. I just find it funny that you're on here complaining about the issues your buddy is having while he's trying to fuck the bank out of what he agreed to pay.
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On the other hand, he and the bank agreed that if he did stop paying, they could have the house back.
 
I've been there myself. I still don't take it lightly when people seem to not have a clue. This person simply wanted to lower his payment to be able to afford his home. He's not doing a dump n upgrade. He wanted his home.
 
Lots of things to factor in here IMO as far as thinking the guy is a deadbeat for walking away. Maybe he isn't financially able to make his payments at the moment.
 
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a dead beat? Boy... you guys must have sweet ass jobs. Ever think others do not have jobs like yours or they are the bread winner w/ no help? I am self employed and can make more money if I try. MOST people can't do this. A dead beat would up and roll because he wanted. This guy LOST his house. He has a family with children.

Merry Christmas to you too!!
 
I wasnt saying he was. I was just pointing out that there are a lot of things to factor in before people pass judgement on him for walking away from his house.
 
WOW, way to go offbeat from the OP's questions. Although this is the internet and people are free to insert their 2 cents, but sometimes shouldn't. I'm actually interested to know this as well. Information is always good to have!
 
Michigan allows foreclosure of a mortgage by publication, an auction process, or through a lawsuit in a court.

If the bank bids the amount you owe at the foreclosure auction, you owe them nothing, no matter what they may get for selling the house later.

However, if the bid is less than what you owe, and it is a reasonable market price, you can be sued for the difference between what they bid and what you owe, also called the deficiency.

If the first mortgage holder forecloses in Michigan, and gets the house back, the second mortgage company gets nothing.

Any secondmortgage has to pay off the first mortgage to get ahead of them in line for rights to the house.

Theoretically, a foreclosure auction could bring more than the balance owed on the first mortgage, which would go to the mortgage holder.

But that does not happen any more in Michigan.



The second mortgage company can sue for whatever amount of money is owed.

In judicial foreclosure, the mortgage company sues in court to get the house back.

Of course, any suit for money by a mortgage company can be stopped by filing bankruptcy.

What if you have two mortgages, and do a short sale?

Well, as a lawyer, what can I say? It depends.

(see part two)

The second mortgage company has to sign off for title to the real estate for you to transfer, that is, to sell your house.

But signing off their lien on the house does not mean you do not owe them any money, it just means they do not have your house as security for the loan any more. You still owe on the note, and they may forgive the loan, or not.

Same with the first. They can sign off their lien on the house so the short sale takes place, but that does not automatically mean that you do not owe them any more money.
 
the real question is...how many of these banks actually go after the original borrower and sue for the money? i don't know of anyone yet that has been taken to court for the financial responsibility case yet. there is, i believe, a statue (sp) of limitations though.
 
Billydroveit said:
the real question is...how many of these banks actually go after the original borrower and sue for the money? i don't know of anyone yet that has been taken to court for the financial responsibility case yet. there is, i believe, a statue (sp) of limitations though.
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Just over 6 Years
 
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