Upcoming Foreclosures

In foreclosure in Michigan (home), how do they determine if you have to pay deficiency or not?

The law says something to the effect of "in some cases a deficiency may be charged". How is that determined?

Public Comments

1. Your mortgage balance + the legal and other related cost to foreclose = the total balance due to the lender; subtract what they sell it for and this is the deficit. (They are not going to seek the highest and best offer, just a suitable offer.) If you were selling your own property you would not entertain the idea of selling for less than what is owed, they will not do the same on your behalf if they have to sell it. Which creates the deficiency. The safest way to avoid this is by offering the property to a buyer by "short sale" or offer the "deed in lieu" of foreclosure to the lender - give the property back with nothing going to you.
2. When a bank foreclosures, the property is eventually sold at auction. If the purchase price obtained through auction doesn't cover your entire mortgage balance due, plus late fees, plus attorney fees, and any other bank related fees involved, you WILL be expected to pay the difference. A judgement will be filed against you for the remaining balance. If you have enough equity in your home to cover everything, then you will not have a deficiancy balance to pay. But you will lose all equity you may of had. In other words, the bank does not send you a check for the overage.
3. purely up to the bank if they either want to write the debt off, or go after you personally and your assets for the difference