So I am about 115 days late on my mortagage and the mortgage company sent my loan to a law firm near my home to start the foreclosure process. I received a packet of info from this law office on my rights and such. I am going to be filing BK soon and have no intention of keeping the home, nor do I want it. So I have a few questions on how, and if, I should respond to their packet. I have two mortgages (80/20 setup to avoid PMI) however their packet only includes the first mortgage.
1. The letter states I have 14 days to contact them to arrange a meeting to discuss loan mods and if I do so, the foreclosure process will not start until at least 90 days after I start the process to work something out. I know this is a new law that Michigan passed recently. My question is, should I go ahead and do this to buy some time? I am trying to save for moving and could use that extra 90 days..Although I do not want to keep the house no matter what so is this a waste of time and will it look bad when I file BK that I worked out a loan mod and then just didn't pay it like the original mortgage? I would like to drag it out if possible to get through winter so I can move in the spring.
2. The letter states if I choose not to contact them, proceedings will be begin and either proceed in court with as judge or by advertisement. Michigan is a non-judicial state so if they choose the advertisement route, what kind of time frame am I looking at after they advertise until the next step? And what is the next step? Auction?
3. I have read that after the sale of your home at auction, Michigan has a 6-month redemption period that kicks in. I assume that applies to everyone? They can no longer kick you out on the day of the sale as before?
Thanks for the help once again...
1. The letter states I have 14 days to contact them to arrange a meeting to discuss loan mods and if I do so, the foreclosure process will not start until at least 90 days after I start the process to work something out. I know this is a new law that Michigan passed recently. My question is, should I go ahead and do this to buy some time? I am trying to save for moving and could use that extra 90 days..Although I do not want to keep the house no matter what so is this a waste of time and will it look bad when I file BK that I worked out a loan mod and then just didn't pay it like the original mortgage? I would like to drag it out if possible to get through winter so I can move in the spring.
2. The letter states if I choose not to contact them, proceedings will be begin and either proceed in court with as judge or by advertisement. Michigan is a non-judicial state so if they choose the advertisement route, what kind of time frame am I looking at after they advertise until the next step? And what is the next step? Auction?
3. I have read that after the sale of your home at auction, Michigan has a 6-month redemption period that kicks in. I assume that applies to everyone? They can no longer kick you out on the day of the sale as before?
Thanks for the help once again...