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Should You Abandon Your Underwater House?

The effects of the historic collapse in real estate values continue to plague the Detroit Metro area and Michigan. Homeowners continue to struggle not knowing what to do when home values have decreased to the point where the thought of ever having equity in the property seems unlikely. When it is difficult to afford mortgage payments, nearly impossible to sell property, or simply a bad investment a homeowner may wonder: “Can I simply abandon my house and walk away?”

If you find yourself wondering why you continue to make your mortgage payments when you are stuck in a house you can’t afford or don’t want, you should discuss your situation with an experienced Michigan real estate attorney. At Galloway and Collens, PLLC, we can explain options that may extend the foreclosure process, allow you to sell out of the redemption period or facilitate a short sale.

Contact a Detroit abandonment attorney today to learn more.

Abandoning Your Property

When sophisticated businesses have a nonperforming asset they look for creative ways to avoid responsibility for their obligations related to that asset. Why should you be any different? From a legal and economic perspective, abandoning your property whether you can afford your monthly mortgage payments or not may minimize your losses and provide options that could help you get back on your feet by allowing you to live in your house for a period of time without paying your mortgage. This is commonly known as a strategic default.

If you choose to abandon your property and allow it to be foreclosed upon, you may be able to sell the property during the redemption period, or pursue a sale leaseback agreement with the buyer that might not otherwise be available to you. We can help you determine if either of these options apply in your situation.

Options During The Foreclosure Process

The foreclosure process start to finish can take several months, and perhaps a year or more. With a thorough understanding of the foreclosure process – from pre-foreclosure to the sheriff’s sale and through the redemption period – our lawyers work to identify any options available that may apply given your unique circumstances.

If you are looking to extend the time in your house while you get your feet back underneath you, there may be options available. A mortgage forbearance, which spreads out missed mortgage payments over a period of time, may delay or stop the foreclosure process. During that time, we can explore additional options for selling your property or avoiding additional financial loss.

Contact A Wayne County Sale Out Of Redemption Attorney

Our experienced attorneys can help you identify opportunities within the foreclosure process that may help you work it to your advantage. We can also help you determine if a do-it-yourself forbearance is right for you. To learn more, contact our law office.