Mortgage Foreclosures Cause Some Homeowners To Pay Out Of Pocket
(Source) In almost all foreclosure by publication the mortgage company bids the amount due on the mortgage, and no one else bids higher. Even if someone does, there would be no deficiency, as the sherrif’s deed transferring the property 6 months after the foreclosure sale effectively is for the amount bid. This means, you have lost the home, but you owe nothing.
Foreclosure in Michigan are on the rise. Too many home owners have gone in over their heads and now can’t afford the home that they bought when the market was up. They were sold bad mortgages.
In some of these situations, the mortgage company is walking away with the property, which they don’t want, and the homeowner owes no money. The downfall is the negative rating on their credit report, which affects the home owner for years to come. Still, there is no additional money out of pocket. They do lose their equity, however.
In other situations, if the mortgage company bids less than the amount you owe on the property then you will have to make up the difference out of your pocket. That could be a big chunk of change, especially if you owe more than the house is worth. We’d hate for that to happen to you. If you are seeking a Michigan mortgage, you should do your homework first. Do business with a mortgage broker who will give you the straight talk about your situation. Deal in facts, not illusions.
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