Monthly Archives: July 2011

Michigan Bankruptcy Mortgage Options

MICHIGAN BANKRUPTCY MORTGAGE OPTIONS Part One

You owe more on your mortgage than your house is worth, you want to leave, what are your options?

  1. You Cannot Afford The Payments

If you cannot afford the payments, you will not be able to keep your house, unless you get a modification from the mortgage company.

You have probably tried that already; so you know you are at their mercy. They lose you papers, it takes forever to get through, when you do, someone different has your file.

A. More Than One Mortgage On Your Home, And You Want To Keep It

Under current law, there is no way to force the mortgage company to change the terms on the first mortgage on your principal residence. If it is a vacation home, you can. If it is a home you are renting to someone else, you can. If you live there, you can’t.

But, If you have a second, or a second and a third, and the home is worth less than you owe on the first, in a Chapter 13 bankruptcy, you can strip off, or get rid of, those second and third liens.

But, you have to be able to make the payment on the first mortgage.

Many of my clients can afford a Chapter 13 payment, because it works out to less than the second mortgage payment.

You could be behind on a second mortgage of $300 per month, but you may be able to file a Chapter 13 plan and afford a $200 per month payment.

At the end of your three, or five, year plan, you are discharged of your personal liability on all unsecured debt, including those second and third mortgages, and, the lien on those mortgages is gone, discharged.

B. I Give Up! Take My Home, Please!

You are fed up with the mortgage companies, to hell with them, how do I get out of this mess?

If you cannot make the payments out of your income, STOP!.

Please don’t take 401k or IRA money that creditors cannot get and use it for house payments, while you wait for things to turn around.

TO BE CONTINUED

image credit:  Dreamstime

3 Responses to Michigan Bankruptcy Mortgage Options

  1. This is good information Kurt.Our elected officials really need to open there eyes and look at the housing crisis, especially in Michigan.Thanks again

Cities Can File Bankruptcy Too

marquette welcome sign

How does a city go bankrupt? Same way you or I do, spending more than it takes in, over-estimating revenue, under-estimating expenses, or just ignoring reality. Like the federal government, local governments spend OPM, other people’s money.  Its just that only the Federal government can print money. We used to be a federation of states,Continue Reading

2 Responses to Cities Can File Bankruptcy Too

9 Responses to If I File Bankruptcy In Michigan, What Happens To My House?

  1. I know some people who have gone through bankruptcy and kept their house, car, and very often even came out with a higher credit score. Bottom line is, get a good attorney, do the right thing. There should be nothing to fear about going through the process.

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Who Will Know If I File Bankruptcy?

Many clients ask me who will find out if I file bankruptcy?  Does my boss have to know? I don’t want my relatives and friends to find out. All court proceedings are matters of public record, unless the Judge orders the records sealed at the request of a party, and it must be for specialContinue Reading

4 Responses to Who Will Know If I File Bankruptcy?

  1. You should really find professional legal advice here. The help of lawyer would really make things clear for you and you’d have a better view of the options available.

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Michigan Foreclosure: The Big Picture

What do the statistics tell us about the big picture for our economy now? That there will be more bankruptcies in Detroit, and everywhere else in Michigan, and the U.S. The foreclosure crisis continues, if you want chapter and verse, read “Reckless Endangerment.” Foreclosure sales are declining, but in judicial foreclosure states, which Michigan isContinue Reading

3 Responses to Michigan Foreclosure: The Big Picture

  1. More foreclosure issue, more foreclosure attorneys needed. Thank you for this article.

  2. I can see in the future how foreclosure will be if we don’t have expert foreclosure attorney.