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Double mortage foreclosure in Michigan, I need an expert!?

I need someone who has a little knowledge regarding mortgage foreclosure- we're going to see a lawyer in the next few days, but we're a little nervous, so any knowledge for a little piece of mind would be a huge help! My fiancé' has a house with a $150G mortgage, and a second mortgage of $60G debt consolidation. Unfortunately, he made some business investments that went wrong (basically he got F*). The $60G is money that someone owes him that he will never get back. Michigan economy is going from bad to worse. We tried to sell his house. We did a lot of work and now it's gorgeous, but we can't get anyone in to see it. Even so, the most the house will sell for is $175G. That leaves $35G gap. It's getting bad for us. It has been suggested that we just foreclose. Sounds good and all (We know it ruins the credit-got that covered), but two big questions: Can we foreclose on both mortgage without them repossessing anything and in that case, do we stop paying property tax as well? HELP!

Public Comments

1. They are only going to take the house, they cant take anything inside the house. Here is what will happen the first forecloses if the second mortgage doesnt pay off the first they are screwed they dont get a dime. And you dont owe them anything. Its in the seconds mortgage best interest to make a deal. If you can find a buyer or do a short sale they might take the 25K and walk away. Maybe you can get the first to pitch in 10K so they dont lose as much. It happens all the time. Find a real estate agent that deals in short sales. That way its not a foreclouser against you. Chances are if you have that big of a second at sale its going to go for at least what you owe on the first. But if it doesnt say it only sales for 160K You will owe a deficiance Judgement of the difference to the first for 15K. They will sue you for that. The bank will set a price of say 150K If anybody bids say 151K and the bank doesnt buy them out. Even though the bank lost 25K they cant come back on you at all. Its only if the bank buys it back at the sell. Trust me the bank doesnt want your house. Work with them. If they know its foreclosing they will want a short sale if you can work it out and find a buyer. They dont want to market it and sale it. They will take their loss now. Email me if you have any further questions off my profile. I hope this helps, good luck.
2. A foreclosure will leave a huge mark on his credit . Have you thought about loss mitigation ? Saving the home ? email me - i might be able to help... Lisa@CFreedomForeclosure.Net
3. Michigan is a market that is having lots of foreclosures right now. You might try talking to the two lenders. The lenders know there have lots of forclosures there now and many will do almost anything so they don't have to take back real estate. It depends on how bad your situation for paying the loan is. If you can do most of the loans, but need a little help, try this: Start with the second loan, because they are the one with the biggest problem. If they foreclose, they won't get anywhere near their money back, if any. So aproach them, show them the numbers. Tell them you don't want to get foreclosed on. Ask them if they can restructure the loan so you, and they, won't go into default. Maybe suggest they accept interest only payment for three years, or something where you are still making some payments, but they also have a window they can look to of getting paid off. If you need more help than the second lender is willing to give, go to the first lender. Go through the numbers with them, and ask for whatever concessions you need... a two year reduction in payments, or whatever. One way that might make some sense: Show the numbers to the second lender, and see if they will close out the loan as paid off if you pay them, say $30,000. If they say yes, see if the first lender will make a new loan to you to buy out the second... ie they they loan $180,000 of which $30,000 pays off the second. These are some ideas. The main thing is get a dialogue going with the lenders. Keep throwing ideas at them that equate to you being able to make the payments. Hopefully, something will work out so everybody is satisfied. Not happy, maybe, but satisfied. Good luck.
4. do your self a favorite CHAPTER 7
5. Other than to tell you that you need to try to work out a forebearance agreement with the lender and versus me spouting off with suggestions here is a link that is a must for you to visit. National Home Recovery Program for foreclosures http://www.nhrp.com/ I wish you the best on your research