CLINTON TOWNSHIP, Mich. -
Aug. 15, 2015 -
PRLog -- Macomb County Michigan — Walking away from your home or condo and allowing it to foreclose is a decision which can haunt you for years. Once a home is sold at the foreclosure auction banks have up to 15 years to file a deficiency judgment lawsuit against you. The deficiency amount is the difference between what you owe on your loan (including all missed payments, late fees, and bank attorney fees) versus what the home sold for at auction. They will call you day and night, at home and work, harassing you to make a payment. Additionally, they will send you letter after letter offering to settle the account, even though you are no longer obligated to pay. If you choose not to settle, they can continue to post late payments on your credit for years. Foreclosure is the worst possible option because it is the most damaging thing you can do to your credit. It’s like cutting off your hand because of a hangnail. There are better options.
A short sale is the much better option. There are essentially two reasons to do a short sale. The first is to obtain a deficiency waiver. This is a written agreement from your bank NOT to come after you (sue) for the deficiency amount. The second reason to do a short sale is to minimize damage to your credit. Once the short sale is finalized, banks report to the three credit agencies that your account has been “settled or negotiated.”
This stops the late payments from being reported by your bank. When you do a short sale, your credit may take a temporary hit; however, you can begin rebuilding your credit as soon as the short sale is finalized. This is much better than a foreclosure or Deed in Lieu, where the bank can continue to post late payments to your credit for years and years.
Contact Rick Giese at (586) 242-3100 or www.MIForeclosureHelp.com
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