“I’m behind in payments…will I be giving my house back to the bank in Houston?”
Homeowners going through foreclosure often wonder if giving my house back to the bank in Houston makes sense.
Losing your home is not a good situation far from it. However, homeowners have to face this reality daily.
If your situation progresses too far, you may be forced into the unfortunate situation of having to give your house back to the bank in Houston TX, leaving you temporarily without a place to stay.
Hopefully, you have family and friends there to give you a helping hand. We all go through challenging circumstances. It’s how you come out on the other side that matters.
In addition, there may be long-term consequences, including a dramatic and long-lasting impact on your credit (and your ability to get a house in the future).
No one wants that. That’s not an ideal outcome. Fortunately, there is a strategy you can take today to help you proactively protect yourself and get back on track to financial solvency.
Here’s a brief overview of the foreclosure process in Houston
The foreclosure process can vary depending on location and the type of mortgage you have.
Usually, if you miss a few mortgage payments, your loan company will start sending you notifications and then warnings. Usually, these notifications are in the form of letters, emails, or phone calls.
If you fail to pay back any fees and mortgage payments that are in arrears. The bank could foreclosure and auction your home to recoup the money lost.
How long you can stay in your house after it is sold in auction depends on the state where you live. At some point, however, you will need to find a new place to stay.
Not to worry, you have options!
If you wait until your home is foreclosed, it can have a devastating effect on your credit rating. One option to protect yourself is to work out an arrangement with the loan company called a “deed in lieu of foreclosure”.
The deed in lieu of foreclosure has many advantages. However, the principal advantage to the borrower is the immediate release from most or all of the indebtedness associated with the defaulted loan.
Subsequently, the homeowner doesn’t have a foreclosure listed on their credit report.
The banks have this option available to avoid the cost of the foreclosure process.
You can also avoid foreclosure by selling your house before it’s lost at the auction. If your loan is paid in full then there will be no more penalties against you and your credit score. (If your loan isn’t paid in full you will need to make up the shortfall).
Here’s an example: Let’s say you owed $120,000 on your home and you sold your home to Sell Your Homes Houston for $110,000.
You would give that money to the loan company, along with $10,000 to make up the shortfall, and your loan would be paid off.
If you contact a real estate attorney, you may be able to negotiate a deed in lieu of a foreclosure deal in which the loan company agrees not to go after the difference in exchange for the deed to the house.
At Sell Your Homes Houston , we’re professional real estate investors. Contact us today at 832-535-2034 to find out what we can offer you for your house, It doesn’t matter if you continue to live in the house or if it needs major repairs. We would love to try and help you.
I don’t want to give my house back to the bank in Houston!
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 simply wait out the foreclosure process.
In fact, going through foreclosure could impact your credit score by as much as 100 to 150 points. leaving you with little options to purchase another home for almost 7 years.
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.
Conclusion
Giving your home back to the bank is seldom an easy and painless decision. Instead of letting your home go through the entire foreclosure process.
Talk to your lender about deed in lieu of foreclosure. It’s a great option to help you save your credit and future buying power. If you want to sell your home to an all-cash buyer in Houston TX contact us, we would love to help you.