Bankruptcy Still Offers Mortgage Debt Relief

I talk to so many people trying to keep their homes, or, even rental properties, who

are unaware that bankruptcy law still offers some remedies for Michigan foreclosure issues.

image credit: dreamstime

Say you bought a house with a friend or relative when you were younger, then moved

into a bigger residence when you got married, whatever, and kept the old one to rent

out for some side income.

Great idea, right?  Home values only go up, so if you break even on the rent, you make

money on the investment.

Until the bubble bursts, the music stops playing, the rental house is worth less than

you owe on it, and, no tenant!

Before you give up, consult an expert, bankruptcy law allows the cram down of that

mortgage to the value of the home, and the court can re-write the terms, including

interest rate and how long to pay it back.

This is true if the home is NOT your principal residence.


image credit: dreamstime

If you have a second mortgage on your Michigan home, odds are, the home is worth

less than what is owed on the first mortgage.

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