Upcoming Foreclosures

Given Michigan's bad economy, if we lose our jobs (not unlikely), will the bank work with us to save our home?

(there are 4,500 homes for sale in one county, about 25% of which are foreclosures). I mean, with a backlog of repossessed and abondanded homes, it should take over a year to sell ours. Any info on this process will be appreciated

Public Comments

1. most likely the bank will NOT work with you - they can't make "arrangements" with you if you lose your job because then you have no income to work with to make arrangements. If you get to that point - you're better off selling it as a short sale. Personally, I'd move out of MI.
2. Some banks will let you pay the interest only for 3-4 months, no principle if you become unemployed. Call them right away and try to work this out, do not wait until you are late.
3. The current national average is 11.2 months to sell a home vs. the normal 5-6 months. That means twice the number of homes are for sale. Even worse in some areas like yours. Excess supply drives down prices faster than WalMart. If you're still employed, you're lucky. If you suspect you may become unemployed, be prepared to make radical changes. The bank wants to get paid so they may provide assistance but don't expect much. Either you make your payments or default and they repo.
4. They can restructure a subprime ARM. But if you have no income, there is no way the lender can "work with you."
5. Yes. Since you are still employed, that is a good thing. However you need to evaluate your situation NOW. Cut out all unnecessary spending, cut expenses wherever you can. No job is safe right now, no matter where you are. Michigan, though, is hit even harder because of the auto industry. Not to mention, if you live any where close to Detroit, you have to deal with the fall-out from the former mayor of Detroit, the loser Kwame Kilpatrick. If you live in Wayne County, or more specifically Detroit itself, I honestly feel sorry for you. Good luck. I am in Michigan, too, and the economy here SUCKS.
6. I would try to lower all your payments and save as much as possible while you are still employed. You could talk to the bank and refinance the balance on your house, but only if you have equity and a job. Do not re-fi and increase the principle ( cash out ), only that may lower your monthly payment. Have you considered looking for a more secure job now, instead of waiting for yours to disappear? Good Luck