My question involves a mortgage in the state of: Michigan.
Filled for BK with first and second added into it, both carried by same lender. Did not reaffirm but did stay and pay. We recieved letter of default and we were given 14 days to respond to the letter if we wanted a meeting or 30 days to pay the balance. We did talk to our BK lawyer briefly but since we are not paying them they gave us basic info but I am really confused and could use some clarification if possible.
1. The lawyer said since we did not reaffirm we are not responsible for any of the 1st or second mortgage and we can walk away scott free and there would not be any 1099 because we do not own the property. Is that correct?
2. Lawyer said we can't be sued for normal damage to the home (ie bad carpet, leaks, etc) as long as we do not do purposefully damage?
3. Lawyer said that we have 9-12 months before we have to move. We are filing with a non-profit that the state sent us to request a meeting with lender and that gives us 90 days, and then a month or two for the sheriff sale, and then 6 months after the sale during the redemption period?
Thank you for your help, I am very nervous that they will sue us or we will not have enough time to save money for a new place and get out.