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Dealing with Foreclosure and Helping with Short Sales
Foreclosures are at an all-time high. Perhaps it is the result of “toxic loans”. Let’s start by stating that no one wants things to get to this stage. There are many roads that can lead to losing your house to foreclosure. Obviously the best advice is to do whatever is necessary early in these processes to avoid foreclosure. If you’re a Michigan resident, perhaps we can help you. First read about Foreclosure Basics.

HUD has a good booklet on line with tips on how to avoid foreclosure. But what if you’re beyond that point and already into foreclosure? An, why should you be concerned about someone else’s foreclosure, after all it’s not your problem, right?
If you go to the Web and search on foreclosure you’ll find that most of the articles or pages there deal with providing information to those who seek to profit from your misfortune – buyers of foreclosed houses. You’ll also find a circling pool of sharks ready to “help” you out, but beware of fraud from these “helpful, workout companies. I’m sure amidst all of this there are good, honest companies that truly are offering products or services that are legitimate.

Here is a quick and very brief overview of Michigan’s Foreclosure Laws taken from one of the Webs sites that specialize in that niche.
Non-Judicial: If the mortgage contained a power of sale clause, foreclosure can be accomplished by foreclosure by advertisement, a non-judicial form of foreclosure.
If the mortgage did not have the power of sale clause, the foreclosure must take place in the courts.
Deficiency: A lender can sue for a deficiency in either type of foreclosure. If the lender tires to obtain a deficiency after a non-judicial foreclosure, the action can be challenged by the owner. If the sale took place at less than market value, the borrower can get the court to credit full value of the property toward the sale price of the house. This would make it very difficult to obtain a deficiency.
Redemption: There are many possibilities. In all cases the borrower can redeem the property for the amount owed, plus interest. The redemption period ranges from one month if the property is abandoned and has two-thirds of the original loan balance remaining to one year if over four units or three acres of land, and not abandoned. In Michigan the norm is 6 months.
Foreclosures can take quite a bit of time, so you have time to react and act to the situation.

Perhaps the best advice is to take action early, before full foreclosure proceedings start. This article discusses options when you are in the default stage but not in foreclosure.  

If you’ve been foreclosed, you should read this advice from the IRS about the potential tax consequences

Here are some of the companies or groups that might be on the up-and-up
A for profit consumer credit management service
Another non-profit organization
A good spot for understanding the laws that may apply
For senior citizens facing foreclosure
Help with Short Sales

Hopefully the section above has scared you. It should! You do not want to get to the foreclosure stage.  Losing a house to foreclosure can stay on your credit history for up to 12 years and is actually worse than a bankruptcy.

Before you get to that stage, let me come in and see if I can help. If you have received a delinquency notice from your lender, the time to act is now, before they get too far into the foreclosure process.

The time before the sheriff's sale of the property is the best time to try to still sell the property and get completely out from under the debt. It’s a time when you need al the help you can get. Give me a call and let us get involved on your behalf. I’ll work on your behalf with the lender to set a fair market price for the house that is acceptable to them and likely to get the house sold. It’s called a short sale because the sale price is “short” of the amount owed, so the lender has to agree to take the deal. Many lenders would rather try to get the property sold at that time, rather than go all the way through the foreclosure process.

Short sales are not for the faint of heart, either on the sell or buy side. Go to my Short sale Web site - - for more reading and information on help for short sales.

A non-profit organization