Thinking of walking in Michigan, anyone out there with experience in this?

[ramsey]

We are thinking of walking away from our house in Michigan. My husband took a 30-35% pay cut and we are not going to be able to stay afloat much longer. We have a 1st with GMAC and 2nd with Specialized Loan Servicing (used to be with Homecoming/GMAC). Our first is $87500.00, second is $141000.00. We have refinanced the first to a lower rate a few years back but the second was debt consolidation. The house is currently listed for a short sale at $169,900.00. The house has lost $60,000 to $70,000 value over the the last 3-4 years.

We are in our mid 50's so things are not looking good for the house to re-coop its lost value before we are ready to retire. We are wondering after reading several posts here if it might not be better to just walk away instead of the short sale and all the hassels that brings with it. It is hard to see ourselves pouring good money after bad in a sinking ship.

We have been looking for other employment and have even considered looking out of state if the need be to get our income up. Not having the weight around our neck of the house will make that easier.

Is there anyone out there that has walked in Michigan and could you share your experience with us?

Thanks,
Ramsey

[judybug60]

It sounds like we're in the same boat. Live in Michigan, in our 50's and our house is only worth what we paid for it 15 years ago. I have a second mortgage with BOA and have been scouring this website and elsewhere online for a success story of a 2nd mortgage settlement with BOA. Nothing. Anyone that has defaulted were in non-recourse states. Michigan is a deficiency state. Has anyone out there had luck with BOA second mortgage settlement in Michigan??? Does BOA really sue for the deficiency if I stop paying?

[myway]

It sounds like we're in the same boat. Live in Michigan, in our 50's and our house is only worth what we paid for it 15 years ago. I have a second mortgage with BOA and have been scouring this website and elsewhere online for a success story of a 2nd mortgage settlement with BOA. Nothing. Anyone that has defaulted were in non-recourse states. Michigan is a deficiency state. Has anyone out there had luck with BOA second mortgage settlement in Michigan??? Does BOA really sue for the deficiency if I stop paying?

I am here with you and have spoken to an attorney. He said 99% of foreclosures in Michigan are by advertisement and the bank bids the full amount (full credit bid) and issues you a 1099 form. Second mortgages can be settled. They usually by law charge off after 6 months and at that point the negotiations begin. You can usually settle for a small percentage of the loan. Read the thread about Second Mortgages and how to settle. I think it is a sticky thread so should not be hard to find. Even if they did sue you you could still settle for a lesser amount according to my attorney. I have not been through it myself yet but am passing along the info that he told us.

[ramsey]

Well we have not paid our second since February. In May we got a modification offer from SLS in which they offered to lower our interest rate and take a small amount off the principle. We would still not be able to make it work with their offer. We never heard anything more from them until September in which they sent another offer with even lower interest and a bit more off of the principle. Even though this offer was a bit better we would still not be able to make the payments. At that time we countered their offer with the same interest they offered and just an extra $20,000 off the balance of the principle. We have not heard anything more other then a couple of calls from the collection part of SLS. Nothing in response to our counter. House has gone down in value some more since this all started.

[embaserve]

Hey myway! Thanks for the info, I'm so damned scared of being sued by Bank of America on a deficiency loan it's not even funny. You gave me piece of mind for the upcoming disaster. Bless ya!

[OverandDone]

embaserve: does bank of america own your loan or is it fannie mae? How far into the process are you?

[embaserve]

embaserve: does bank of america own your loan or is it fannie mae? How far into the process are you?

Hey Over, the loan is owned by Bank of America. We just got the first letter from trott and trott law firm letting us know that in 30 days the home will go forward with foreclosure.