Are you in danger of losing your home to foreclosure? This is usually a difficult and stressful time in one's life that involves many important decisions regarding the future. For many individuals and families in Detroit and throughout Michigan, their home mortgage is the largest single expense in their monthly budget and their greatest financial burden. As of April 2012, the median sales price for homes in Detroit was $63,959 and this is significantly less than last quarter and last year's median sales price. In fact, the sales prices have depreciated 14.6% in Detroit over the last 5 years, and this has left many families without the option of moving because of the depreciated value of their home.
Falling behind on your mortgage payment is easy to do, and you may not see the consequences of this until you have missed several payments. Home lenders and banks will usually take action to foreclose on a mortgage around 90 days after the first missed payment, but they may begin foreclosure proceedings as early as 30 days after. If you are looking to avoid the embarrassment and stress involved with a foreclosure, you should consider a deed in lieu. This foreclosure alternative allows a bank to have the deed to your house without the necessity of foreclosure and without the consequences of foreclosure either.
When you choose to file a deed in lieu instead of going through the foreclosure process, you will be able to seek a loan for a new home in the near future. It is impossible to predict the amount that one's credit score will drop after a deed in lieu of foreclosure, but they typically remain on an owner's credit record for up to seven years. Similar to short sales and actual foreclosures, a deed in lieu of foreclosure gives you freedom from your financially hurtful mortgage and the bank or lender forgives the difference between the sale price and the loan's remaining balance. To learn more about if deed in lieu is a right foreclosure defense for you, don't hesitate to contact a Detroit bankruptcy lawyer at the Bankruptcy Law Offices of Marshall D. Schultz.