Worth hiring an attorney???

[loser104]

Live in michigan and I stopped making my first and second mortgage payments (both by same lender, Green Tree) January 1st of this year due to job loss. Received a notice of default about 2-3 days ago, sooner than what I had expected. Didn't think that I would get that until AFTER my third missed payment, and it has got me a little worried, thinking that Green Tree is going to do their best to oust me as quickly as the law will let them.

With no job, planning on letting the house go in foreclosure, but I really would like to take advantage of this whole process and spend the rest of the year in it rent-free (though keeping current with the utilities and condo association dues).

Plan on hiring a BK attorney for a possible ch.7 filing sometime after the summer (cost of about $1500). Do you think it would be in my best interest to hire a "foreclosure" attorney also to try and stretch it out??? Or maybe see it the BK attorney can work out a package deal to help me out a bit. Would be more than willing to pay an additional $500 or so just so I don't have to deal with the mortgage company calls that continue to bother me.

[jlmaca]

Live in michigan and I stopped making my first and second mortgage payments (both by same lender, Green Tree) January 1st of this year due to job loss. Received a notice of default about 2-3 days ago, sooner than what I had expected. Didn't think that I would get that until AFTER my third missed payment, and it has got me a little worried, thinking that Green Tree is going to do their best to oust me as quickly as the law will let them.

With no job, planning on letting the house go in foreclosure, but I really would like to take advantage of this whole process and spend the rest of the year in it rent-free (though keeping current with the utilities and condo association dues).

Plan on hiring a BK attorney for a possible ch.7 filing sometime after the summer (cost of about $1500). Do you think it would be in my best interest to hire a "foreclosure" attorney also to try and stretch it out??? Or maybe see it the BK attorney can work out a package deal to help me out a bit. Would be more than willing to pay an additional $500 or so just so I don't have to deal with the mortgage company calls that continue to bother me.

If your primary goal is to stay in house as long as possible your delay tactics should be of some legal quality or the judge will just throw them out. I believe your first oportunity for delay would be answering the foreclosure lawsuit. You should have 20 to 30 days to do so. If you want to go the attorney route have one lined up and ready because lawyers are increadibly slow. You walk into a law firm and say "hey answer this for me now" and they'll charge you a small fortune. BK attorney might be good. You'll have to ask around, I talked to several and they were not interested in playing that game.

[AngelinaCatHub]

'loser104', don't over talk to your bk lawyer. Probably in some of the "small talk" you will be doing while working over your forms, he will volunteer a suggestion. Yes by all means respond to the Mortgage company. You don't want them to get a default and toss you out with an eviction suit. Matter of fact, you can stall them considerably just by filing and getting your automatic stay. They cannot toss you out unless they petition the Court of a lift of that stay. Gets you a couple months there maybe and you could complain "hardship" to the Judge and have that lengthened. Without a job, I doubt it would be a lie for sure. 'Hub

[logansdad]

( if no unemployment insurance ) go to a temp agency and get a job and then try a mortgage mod ( you must have income) That will stretch out 60 days or so. Right now you probably have 90 days to the sheriff sale date.The process in MI from default to sheriff sale is usually 60 days. They have to publish it 4 weeks in the paper and the sale is usually 30 days after. Then you have 180 day right of redemption period. then 30 days after that. So doing nothing at this point will give you 9 months right off the bat.

We are looking at the same issue right now however for us it is different because we are NOT behind they are threatening because we didn't reaffirm and our choices were : redeem, reaffirm or surrender. We just don't want to move in winter or around the holidays. But are prepared for anything at this point so for us we could be moving in Jan 11.

[HakunaMatata]

Are you positive you received a NOD? Did it come from an attorney? If so, we have exciting new Public Acts in Michigan that offer a legal 90 day delay to foreclosure and the possibility of a judicial foreclosure. Contained within your paperwork should be a list of MSHDA approved housing counselors. Contact a counselor and make an appointment if you wish to have a mediator. Call your lender's attorney (must be done within 14 days of date of the notice -NOT the date you signed for the notice) and schedule a modification appointment. Approximately one week following your request, you'll receive paperwork from the attorney requesting financial information. Complete it and send it back to the attorney. The attorney's office will schedule an appointment for you.

If a modification agreement is achieved (this must be done through the attorney, not directly through your lender), obviously, foreclosure ceases. If a modification agreement isn't achieved AND you satisfy the criteria for a modification, the foreclosure will become judicial instead of non-judicial.

Don't panic yet; and, don't forget the generous redemption we have in Michigan. The majority of homeowners are entitled to a six month redemption following the Sheriff Sale.

[loser104]

Thinking I will just let the whole foreclosure process play itself out. Probably no need for an attorney or contesting anything. I understand about the 6-month redemption period for MOST homeowners, but what are the special circumstances in which one does NOT get the 6 months out of it? Because I declined the offer of a modification (due to my current income and budget, couldn't afford a mod even if they knocked down my payment by 80%), can they reduce my 6-month redemption period?

[HakunaMatata]

If you're referring to a mod you attempted formerly with your lender, this doesn't factor into the new laws. Contained within the attorney's paperwork you received should be a statement similar to this: "The request for a meeting must be made despite any independent loss mitigation options you may be pursuing with your lender".

Here is an overview of the newer laws:

http://www.berrymoorman.com/publications/2009/michigan-foreclosure-law-and-loan-modification.php

Here is a general foreclosure timeline:

http://www.oakgov.com/chi/assets/docs/foreclosure_timeline.pdf

Provided you satisfy the six month redemption criteria (residential property, doesn't exceed four units/three acres, etc) and the property is occupied, you're entitled to the redemption. A mod attempt can't disrupt this; however, you can delay the foreclosure by three months if you pursue it.

[logansdad]

the only way you lose the 6 months is if there is abandonment then its 30 days.