My question involves a foreclosure in the State of: Michigan
I applied for a loan modification through National City in August 2009, I received paperwork (October 2009) for a trial program that reduced my monthly payments from $903 to $598 a month. After sending in all required documents, numerous times, my 3 month trial period came and went and after calling the bank on a weekly basis to get a status update, I was told to continue to make the trial payments. After 7 months, I was denied (PNC now owned National City), from my calculations I would have qualified based on my income at the time. I was told that I now needed to pay the $2000+ that was not paid on my loan during this time period. The payment plan was not affordable for me at the time. As I was unable to do so, the bank sent me paperwork to explore my options of a short sale, deed in lieu, or foreclose.
I put my condo on the market (now May 2010) at the comparable for the neighborhood, 45K, in an attempt to do a short sale (I had originally bought for 109K and I now owed 106K). The bank denied an offer for 35K and stated that they wanted at least 69K for them to approve a short sale. The next offer of 45K was also denied by the bank. With nothing else to give them, the condo went to Sheriff's Sale in January 2011 and the bank bought it back for $26,250.
My condo was a conversion (apartments to condos) and the developer is now selling the remaining units like mine for 39K 'unfinished' or 49K 'finished to your specifications'. I am attempting to continue to sell during the redemption period as just a regular sale to clear the $26,250. I am keeping the association dues current until I sell or the bank takes the unit over. I realize that after all of this,the bank can still pursue me for the deficiency.
I guess my question is that if in fact they do pursue a deficiency, do I have anything working in my favor to show that they denied offers that were well above what they bought the condo for at the Sheriff's Sale? I have every single document that pertains to this process since its inception in August 2008. Or, am I pretty much screwed because it seems like banks need no justification for the decisions that are being made.