Myths About Michigan Foreclosure Can Affect Your Financial Future

Myths About Michigan Foreclosure Can Affect Your Financial Future

The pain is so great when you realize that you are going to lose the house. You’ve talked to your lender until you are in need of some Valium; you’ve lost a ton of sleep. Now your health and marriage is affected. It’s time to get off the merry-go-round and solve this problem. Before we solve it, let’s look at some facts:

MYTH #1: “I’ll work out a Loan Modification with my lender” There are some cases of loan modifications working but they are few and far between (less than 10% using the government’s own statistics). If they worked, you wouldn’t see so many bank owned properties littering our cities. Remember, you owe several months behind in your payment. That’s a lot of money and the lender is not going to forget that.

MYTH #2: “I’ll make partial payments until I can catch up.” Save your money! Lenders will more than likely send it back anyway. They want full payments or you are going into default and facing foreclosure anyway. Many times they return full payments if you are behind.

MYTH #3: “I’ll just hand over the keys to the lender and walk away from the debt. What can they do to me? I don’t have the money.” Unfortunately you can’t just walk away from your debt in Michigan. You signed a binding contract with your lender to borrow a huge amount of money. That doesn’t just go away. Somehow you have to get the bank to agree not to pursue you for the money. They can come after that money for 7 years into your future! They can garnish your future wages, tack liens on to future properties…not pretty. We’ve got answers though. Read on.

There are few options for struggling homeowners facing foreclosure but there is one hope that works for many. You can short sale the house. That means selling the house for what a buyer will buy it for in today’s market and negotiating with your lender to forgive the rest of the debt. Forget what you’ve heard about short sales (and the national 10-20% success rate). We have an 85% success rate in short sales negotiating.

Contact us to discuss your situation and see what will work for you! We are here to help!


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