What are my options for walking away from my Micihigan home?

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1. Licensed in MI

   

   John F. BrennanPro

   Saint Clair Shores General Practice Lawyer

   Contributor Level 16

   

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   Answered June 13, 2012 14:53. You should speak with your bankruptcy attorney or bring your file in for review. Without a review it is actually impossible to form an opinion and provide advice. See an attorney now before you make any additional commitments which you might come to regret.

   To the PROSPECTIVE client, my answer to your question(s) is for general purposes and based upon what little... moreTo the PROSPECTIVE client, my answer to your question(s) is for general purposes and based upon what little information you have conveyed. It is based on such limited information that the general answer should never be relied as a reason for your action or inaction. My response does NOT establish an attorney-client relationship and such may only be established by mutual agreement, and the signing of a written retainer agreement. For an appointment please call please call 586-778-0900 or contact brennanj@lawyermichigan.us via email. less

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2. 

   Mitchell Goldstein

   Glen Allen Bankruptcy Attorney

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   Answered June 13, 2012 12:18. Did you actually reaffirm the debt or did you file in your documents that you were going to do so? The Code does not require you to reaffirm real estate debt for you to keep it. More likely, you just kept the property and kept paying on the debt. I suggest that you check your case file (or contact your lawyer if you had one) to find out the status of the debt. If it was discharged, then there is no more obligation to pay and you can walk away.

   Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice.... moreMr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised. less

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3. 

   Geoffrey Khotim

   Scottsdale Chapter 11 Bankruptcy Attorney

   Contributor Level 8

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   Answered June 13, 2012 14:05. Yes, you absolutely need to check if you reaffirmed the debts. A reaffirmation agreement is usually valid under two circumstances. One, you and your attorney sign it and it gets filed with the court and is thus automatically approved upon filing, or two, only you sign it and the court approves it with a specific order. In any case, you really need to find out if you actually reaffirmed the debts.
   
   If you did reaffirm the debts, you are stuck with the loans and will have to wait numerous years to file another Chapter 7. I can tell you this, if you had an attorney and he helped you reaffirm the debts and/or was aware you were going to, he may have committed malpractice. There is simply no reason or requirement to reaffirm mortgages.

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4. 

   Michael J Corbin

   Faribault Bankruptcy Attorney

   Contributor Level 20

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   Answered June 13, 2012 11:49. You have few options. Since you reaffirmed both debts and Michigan is a recourse state, meaning that the lender on the first mortgage can come after you for the deficiency on that mortgage after they foreclose and sell it off, you are stuck. Not only will the first lender come after you, but the second mortgage will as well. You can file a Chap. 13 when that occurs, but you'll be stuck in a payment plan having to pay these creditors for some time. You should investigate a short sale or a deed-in-lieu, but they probably won't agree to either. I'd go an speak with your bankruptcy attorney again.

   We can be reached at 507.334.0155. Our web address is: www. corbin-law-office.com. Answers on Avvo are not to... moreWe can be reached at 507.334.0155. Our web address is: www. corbin-law-office.com. Answers on Avvo are not to be considered a response to a specific legal issue in a specific jurisdiction - they are to be considered only general responses to hypothetical scenarios posed by the questioner. For specific legal advice, please consult with a licensed attorney in your jurisdiction. No information contained herein should be construed as a solicitation for business, an offer to perform legal services in any jurisdiction in which the attorneys of Corbin Law Office are not licensed, or the dissemination of legal advice. No creation of an attorney-client relationship should be assumed or implied. We are a debt relief agency. Corbin Law Office helps people file for bankruptcy relief under the bankruptcy code. less

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5. 

   Dorothy G BuncePro

   Las Vegas Bankruptcy Attorney

   Contributor Level 20

   

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   Answered June 13, 2012 14:04. You may wish to see if you could get you lenders to agree to waive any deficiency against you if you pursue a "short sale" of your property. Some lenders will, others won't.
   
   I would suggest meeting with several realtors that specialize in short sales to see what their experience has been with your particular lender.
   
   Hope this perspective helps!

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