Michigan Foreclosure question

[tabbcat]

My husband and I are thinking of moving to South Carolina for work and voluntarily foreclosing on our home in Michigan. If we were to try to sell in this market, we would lose at least $25k on the house value, $10k in realtor costs and $15k in mortgage payments assuming it takes a year to sell. $50k to go about things the right way...it's very sad. So we're thinking foreclosing might be our only option.

Relevant: The house is in my name only, I got an 80/20 loan, so the loan is through two service providers (AMC and GMAC). My husband has qualified for a new house in his name only.

My questions:
(1) Does Michigan have anti-deficiency laws?
(2) How long does foreclosure take?
(3) Can I do a deed-in-lieu if I have two lenders?
(4) I've heard that foreclosure can affect your credit for 3 years, 5 years, 10 years...etc. Which is right?
(5) I have credit card debt that can only be paid after we buy the new house. Will foreclosing affect the rates on this old debt immediately? Or will it take a few months? I'm afraid to foreclose if the interest rates skyrocket before I can pay them off (anticipating full payoff in August).

Every credit counseling agency I call either has no information on Michigan laws or wants to try to save my house....they don't get that I just want to get the hell out.

Thank you!

 

[seniorjudge]

(3) Can I do a deed-in-lieu if I have two lenders?

A: Yes; in fact, they would probably be more willing to work with you if you did this.

 

[tabbcat]

In that case, who would get the deed? I was assuming they'd fight over the deed.

 

[seniorjudge]

That's where negotiation comes in....

A deed in lieu of foreclosure does not wipe out the second; a foreclosure would wipe out the second.

 

[tabbcat]

Ahhh, I see. The two mortgage companies would be negotiating with each other.

Thank you for your help on that one!

 

[Movin out if MI]

Same Situation in MI

I am in the same situation. I have taken another job in a different state. My husband has had a 35% pay decrease and his business is about to close. We owe more than our house is worth - has been for sele for 3 years and is listed well below what we owe.
With a time line closing in on our move date... The first mortgage is working on a short sale but the second is threatening to place a judgment aginst us to repay.
Question:

Would foreclosure be better? We are leaving any way.
Can the second garnish our wages in another state?

Thanks - Any info would help.