What happens if you default and they take your house away?

Cristal
I live in Michigan first of all and I know different rules apply different places. I have a 1st($82, 000) and 2nd($20, 000 from seller) morgage and wanted to know what happens if they take my house. I have a 9.9% interest rate and the payments are $700 a month total. I just can't afford it and don't think I can sell it for what I paid 1 1/2 yrs ago. No money to fix it up either and couldn't rent it for what my payment is. I've already defaulted twice and my credit now is worse than when I bought the house so refinancing is probably out of the question. While I know it will be a big bad hit on my credit, I'm not so worried about that although I now realize how important credit is, I can't keep struggling. Just wonding what else will happen like garnishing wages, other things. Please only answer if you have some experience or work with things like this. If you may help me futher by knowing more information please e mail at becki82726@yahoo.com

Abbie
In Pennsylvania, and I'm sure you do in Michagan, have the companies that buy houses, ya know, "we pay cash, settle in 30 days, no commissions", or whatever their catch is . They are in it to make a buck so you will probably not make anything, but it will save you from having another default.I know you must feel discouraged but please try to maintain your credit and get to a place where you can begin to repair. It's hard, it takes time and discipline, but it's so worth it.Good luck..keep your chin up.

Eleanora
Usually the mortgage company will just take the property and will not garnish your wages, though it is possible. When they foreclose you will have a judgment against you. The procedure in my state is then the property goes to the Sheriff's Sale and usaully the mortgage company buys it from the Sheriff's Sale and then has to sell the property. Most of your judgment will be wiped out from the mortgage company buying it at the sale. Also, the mortgage from the seller will be wiped out (if they are named as a defendnat in the case). The seller could still come after you but if they find that it will cost more to collect then what they can get it is not likley. Usually it does cost more to collect then what the creditor could get. Hope this helps. Good luck.

Kaitlin
Both parties could still come after you if they cannot recover their losses through the sale. They could file a judgment against you personally. Many times they do not go this route because the legal fees would start adding up. I would call the lender personally or an attorney to research the possible outcomes.