Unable To Sell Home
Question: I need to relocate for my job and family, but am unable to sell my current home. What should I do?
I have owned my home and real estate in on Lake Michigan for 5 years. I got married last year and had to relocate for my Job and family. My wife purchased a house at our new location (in her name only). My old house has been vacant for over a year and house has not sold I cannot afford the mortgage payments with a new baby on the way and another house. I am looking at the possibility of foreclosing or giving the home back ( doubt I can give back) I need to find out how the process works and if I follow through can they suspend or take my current wages from me. Again, I have another house and family to support. The older house must go shortly I don't want to jeopardize the family of the new house in our new location.
Answer: Thank you for your letter. I am sorry the situation has become so difficult for you. I would strongly recommend that you do whatever is necessary so the Mortgage Company that holds a mortgage on your first home does not have to Foreclose. If they do, it will be a part of your Credit Report and impact you for some time. Certain Employers and insurance companies now use credit reports to review insurance rates and job applications. Just some suggestions, can you rent it to help pay the bills until it sells. Can you find a new realtor to list the property? Can you lower the price? Put your thinking cap on to see what can be done to prevent a foreclosure. If it can't be prevented, then see if by working with the mortgage company and signing a deed in lieu of foreclosure in exchange for them not coming after you for a deficiency. If they will not agree, then make them foreclose, because they will have to meet a number of statutory requirements before they can attempt to collect a deficiency. I recommend you have a good local real estate attorney help you out.
Attorney: Mark Miller