Need help in Michigan please? Anyone?

[Lperdue]

We filed bk a yr or so ago done and case closed We did NOT reaffirm our home but the banks been good with letting us pay and stay on an 18 mo agreement. The agreements up. They know we will not reaffirm since the mortgage was for 217k and the value is now 144k. We asked to continue our pay and stay. The bank said the knew we would not sign a mortgage but would work something out. Then we get the call congrats we have a 25 yr TERM with a seven yr BALLOON and your payments are 300 a month HIGHER and yes the mortgage is for 217,000 , 73k more than the house is worth. WTH. We are not signing this. Has anyone ever heard of such a thing? Next, even though we went thru the bk they still have to foreclose right?? :: we have never missed a payment til today I'm not paying and in Michigan we have a six month period of redemption after the sheriffs sale so..... How long can we live here before we have to move? This doesn't even sound legal! * Help? Anyone?* It's with TCF bank

[NoMoreCards]

We filed bk a yr or so ago done and case closed We did NOT reaffirm our home but the banks been good with letting us pay and stay on an 18 mo agreement. I have never heard of a agreement such as this. Typically, people stay and pay without any formal agreementThe agreements up. They know we will not reaffirm since the mortgage was for 217k and the value is now 144k.You could not reaffirm at this point, reaffimrations can only be done DURING your BK case We asked to continue our pay and stay. As long as the payments are made, the bank will not kick you out. They want the money, not your house. I have never heard of a bank evicting someone who was current on their payments. This simply isn't going to happen.The bank said the knew we would not sign a mortgage but would work something out. Then we get the call congrats we have a 25 yr TERM with a seven yr BALLOON and your payments are 300 a month HIGHER and yes the mortgage is for 217,000 , 73k more than the house is worth. WTH. We are not signing this. Has anyone ever heard of such a thing?Somethng clearly isn't right. Next, even though we went thru the bk they still have to foreclose right??If payments are made, the bank would have a tough time foreclosing. That just isn't going to happen. :: we have never missed a payment til today I'm not paying and in Michigan we have a six month period of redemption after the sheriffs sale so..... How long can we live here before we have to move? Six months after Sheriff sale. You can live there during the redemption period This doesn't even sound legal! * Help? Anyone?* It's with TCF bank

If you want to keep the house, I suggest discussing this with a local real estate attorney. That way you can set your mind at ease about what will and will not happen. If you want to walk, stop making payments and save all the cash you can. Enjoy the free rent, it takes a while to foreclose in all states right now.

[SweetGeorgia]

We had a house in Michigan. I think we stopped paying in February 2009 and it was advertised for sale July 2009. At that point, there was some new law introduced about a mandatory work-it-out period or something and the sale was pushed back. Eventually the sheriff's sale happened in December 2009. The redemption period ended in June 2010. At that point, I think they have to legally evict you.

So I think you'd have a year, maybe more. What a dumb bank! Trading a paying loan for a non-paying one and yet another foreclosed house in Michigan.

[Lperdue]

It is dumb, very. We have never missed a payment. They keep saying the "agreement " is not a mortgage, really? A 30 yr term with a seven yr balloon? That's not a mortgage? Then it's priced 73k higher than its worth. Even if the payment wasn't higher I'd never sign a " non mortgage " legal binding agreement. Good gosh. Now that the gov plans are somewhat over I figure if we begin counting feb march April figure sheriffs sale April or may then six months redemption period we could stay til October easily. We plan on banking up and moving late aug or sept depending on the sheriffs sale. They want us to call them Monday to tell them our intentions. Our intentions were to keep paying but that's not good enough they want this agreement signed. Not happening. Dumb bank for sure.

[Miknan]

LP, I'm also in Mich and wondering how fast they actually have the sheriff's sale. My BK was closed just in Jan. My bank is WF and I haven't really talked to them. My house is only a little upside down (not counting the $24k HELOC I always forget about). With the money I've saved the past months I could easily repay WF and maybe try and settle with the other bank on the HELOC. The problem is, as I understand it, is since I surrendered the house in BK my mortgage is discharged even if I catch up and pay on time and the bank could still kick me out at any time. So I'm walking, just wondering when that sale is and I'm hoping it's soon because I want to leave. From everything I've read it sounds like principle reductions are very rare so I'm not surprised by your banks offer.

[NoMoreCards]

Sheriff sales in Michigan are running slow, just as in all other states. My last payment was April 2011, and I am still waiting on Sheriff sale. Livingston County. My neighbor just had his sale in November of 2011, his last payment was May of 2010.

I am in no hurry for the sale, as I have moved out and my daughter is enjoying free rent for as long as she can. This keeps house occupied, taken care of and gives her a great opportunity to save up cash to buy a house once she needs to leave.

[Miknan]

I don't understand if Sheriff sale goes by date of last payment (mine was probably 9 months ago) or by discharge/closing date of bankruptcy which for me was last month.

[NoMoreCards]

Sheriff sale actually goes by neither. When the lender decides to put the property up for sale, it totally up to the lender. I am sure there are many factors they consider. Bankruptcy, last payment, payment history, attempt to modify, and more than likely a whole lot more. I don't think there is any reliable way to guess when the sheriff sale will be scheduled.

[Lperdue]

True. I'm assuming I have at least 7 to 9 months BUT I won't begin to pack until the sheriffs sale. Then I know I have another six months after that The bank said it could take four months six months or a year and it's case by case. Not true . I don't plan on moving in the dead of next winter so I think I'm safe to move even by October since feb this month was the first month I stopped paying. Dumb bank

[Tom_Mi]

I received an agreement that lowered my payments, and my house was discharged too. My attorney advised me to simply add my own language above the signatures: "This agreement does not constitute reaffirmation of the original note."
I initialed where I added it, then signed the agreement.

But your agreement raises your payment..so I don't know why you'd bother. Maybe you can call them and ask for a lower rate on the part you're paying on, and shift more of the balance into the balloon.

[Miknan]

Tom, but do you "own" the house? Could you sell it later if you wanted? I guess I don't understand what happens if you keep paying but surrendered the house. What would stop the bank from kicking you out after you build up a lot of equity?

[Lperdue]

I'm reading where some nasty lenders in the foreclosure process are stickering homes listing them as abandoned even though the home owners are living in them. Has anyone in Michigan or with TCF bank seen this?

[aaengel]

Lperdue, which town do you live in? If you live near Midland or Bay City, maybe you can try getting a cheaper, 100 year old home in Bay City for around 30-40,000? Just stay away from the East side, and stay away from the one section that's somewhat disheveled and sinking in the Northwest end of the city. You could also do landcontracts as well with sellers that are willing.

[Lperdue]

Thanks but I'm not buying a home. If I did bay city would certainly not be the place I'd go!