Recommended Posts

I went through a Michigan foreclosure which was completed 4 1/2 years ago through a sheriff's sale. Without my knowledge, my mortgage company is now reporting that I owe them $30,000 because the sale did not cover the mortgage amount. While I understand that there are deficiency judgements, I never received any kind of notice of legal proceedings. In addition, and this is the biggest issue, I paid mortgage insurance (PMI) for the life of the mortgage. Everything I've read about foreclosure law states that a deficiency judgment cannot be pursued of the borrower paid PMI. Does anyone know what the steps are for me to have this rectified? I will truly appreciate any information on this subject.


Share this post

Link to post
Share on other sites

According to my consumer law guide, Michigan allows for deficiency judgments under certain circumstances.   Unfortunately, it does not list every single circumstance.   You will probably need to talk to a Michigan foreclosure attorney about this one.   I do not see anything about PMI insurance purchases prohibiting a deficiency judgment but it is possible.   

They may not have an actual judgment against you yet but I would expect a lawsuit to be forthcoming if they are allowed to legally collect that amount.

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.