“I’m behind in payments…will I be giving my house back to the bank in Greenville?”
Losing a home can be one of a family’s worst tragedies. Let’s face it, financial circumstances can turn against us, and our monetary obligations can become far too much for us to manage.
If your situation has progressed too far, the fat cats will attempt to force you into giving your house back to the bank. If they succeed in making you give your house back to the bank in Greenville NC, you and your family could be left without a place to stay. To add insult to injury, long-term impacts on your credit score and the inability to buy or even rent another property could result. No one wants that.
Fortunately, there is are steps you can take today to help you protect yourself and get back on track to financial solvency. If you’ve been thinking “will I be giving my house back to the bank?”, this is the article for you!
Here’s a brief overview of the foreclosure process
The foreclosure process can vary greatly depending on your property’s location and even the type of mortgage you have on it.
Missing a few mortgage payments will almost always cause the company you have your loan through to start sending you notifications and warnings. If you continue to fail to pay your monthly payments, on top of the ones you already missed, the loan company may put your home up for public auction.
Trying to stay in your home after they sell it at a public auction is a problematic experience in itself. The amount of time the buyer will give you to vacate the premises will vary widely based on your state, but the conclusion is inevitable. You will have to find a new place to stay, and you’ll have to locate it fast.
Fortunately, you have options!
Letting your home go into foreclosure will have devastating effects on your credit rating. Luckily you still have at least one option to protect yourself; an agreement with your lender called a “deed in lieu of foreclosure.”
In this kind of agreement, you hand over the house to the loan company, so they save the money they would have spent on the foreclosure proceedings, and you avoid having a foreclosure hit you in the credit rating.
It’s also possible to avoid foreclosure by selling your house directly before it’s lost at an auction. Once you have completely paid off your loan obligation, there won’t be any more penalties against you or your credit rating, but if you haven’t paid your loan in full, you will be responsible for taking care of the shortfall.
For example: Let’s say, hypothetically, you owe $100,000 on your mortgage, and you sold your home to us for, let’s say, $90,000. You would give them $90,000, then pay the shortfall of $10,000 to the mortgage lender, and you will have completely paid your debt off! If you don’t have the shortfall, you can contact a real estate attorney and see about negotiating a deed in lieu of foreclosure, where the loan company agrees to take the $90,000 and not go after the $10,000. This process saves the mortgager from paying untold amounts to try and get the money through the legal system.
We’re professional real estate investors and home buyers at Pitt Home Buyers. Contact us today at (252) 227-0274 to find out what we can offer you for your house — even if repairs are needed.
I want to avoid giving my house back to the bank in Greenville!
Why do people choose to sell their homes instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
Well, losing a home can be difficult, but the impact on your financial situation and your credit is considerably less than if you wait out the foreclosure process. Going through foreclosure could impact your credit score by as much as 100 to 150 points. So the short-term challenge of selling your house is still a better choice than the long-term pain of giving your house back to the bank.