Job relocated/Chase unwilling to assist

[dhubbert]

After retiring from the Military (22 years) I took a job supporting Homeland Security in Northern Michigan and purchased a home 3 years ago through Chase. My job relocated me to Washington state where I recently
purchased another home.
My home in Michigan has been on the market for almost a year without a single offer.
I have been paying extra on the home in Michigan and my credit is very good.
I cannot continue to make dual mortgage payments unless I decide to quit eating.
The dual mortgages have completely depleted my savings and I have even cashed out a few stocks and my 401K.
Is a foreclosure my only option and if so how will it affect my credit?
If it is a short term ding, so be it, but I cannot continue to make dual house payments.
Any assistance would be appreciated.

Del Hubbert

[The Professor]

Sorry about your challenging situation. Michigan, because of its state laws relating to lender options, isn't a very good place to own property that may be foreclosed. The problem is the potential for a post-foreclosure deficiency judgment. I pulled the information that follows from the Internet:

Are deficiency judgments permitted in Michigan?
Yes. Foreclosure is the sole remedy against a property unless there is a separate legal document which obligates a borrower to a specific amount of money. This is usually in the form of a note and guaranty. A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. The borrower can claim that the foreclosure sale was not for fair market value of the property as a defense.

What statutes govern Michigan foreclosures?
The laws that govern Michigan foreclosures are found in Chapter 451 of Michigan Compiled Laws.

What I would be looking at is doing what it takes to find a buyer and sell the property, structuring the transaction as a short sale where the lender won't get all their money but will hopefully release you from liability. Wish I had a better suggestion.

Daniel

[dhubbert]

Thanks Daniel,
Fotunately I am not "upside down" on the property.
It appraised about 70K more than I owe.
Another call to Chase on Monday asking about Deed in lieu of foreclosure is an option I am considering.

After all it is a new year and I have my health, If they continue to not cooperate they can have the home and I'll "carry on".

I'll survive and I feel terible for the folks that CONTINUE to lose their homes without any direction from the lenders.

Keep fighting the Good fight.

Del