Foreclosed and in redemption

[Sashamanbeast]

What is the name of your state? Michigan

My wife and I bought a house roughly 1.5 years ago. My wife got a job out of state 10 months into our ownership. We put the house up for sale and moved. The house has been listed with a realtor for 8 months now and we have lowered the price to exactly what we bought it for 1.5 years ago.

We bought with an 80/20 mortgage and have not paid a single penny to either mortgage companies since we left Michigan 8 months ago. Our first mortgage forclosed on us and the share sale was in March where they bought the mortgage back. We still get a bill from the second mortgage every month and I have been in constant communication with everyone. We were working on a short sale with the second and are now getting all kinds of confusing and contradicting information from everyone. We got an offer 2 weeks ago that was declined by the first.

Basically, the house is an 85 year old 3 bedroom started home. We bought for approx. $72,000. Now we owe $63000 to the first and $14000 to the second. The offer we got would have given $54,000 to the first and they declined saying they want all $63000 or nothing.

My major question is this: If our redemption period runs out in September and the house does not sell, what happens to the $14000 we owe to the second.

We have already claimed bankruptcy 3 years ago and are not terrified of foreclosure. We would rather legitamately sell the house, but do not want any debt after the fact.

Thanks for any insight.

[pojo2]

Looks to me like the first is in the drivers seat and own the property unless you come up with whatever THEY want to satisfy the foreclosure.

Have you thought about taking some budgeting and financial responsibility classes?