“I’m behind in payments…will I be giving my house back to the bank in College Station?”
Nobody desires the loss of their home. However, you may sometimes find yourself in the midst of financial crisis that may seem too much for you to bear.
If your situation worsens, you may have no choice but to give your house back to the bank in College Station, TX, making you homeless for some time. Furthermore, this may result in long-term consequences, including a dramatic, long-lasting impact to your credit. You may also have difficulties buying a house in the future.
No one wants that. Fortunately, there is a strategy you can take today to help you proactively protect yourself and get on track to financial solvency.
Here’s a brief overview of the foreclosure process
The foreclosure process depends on two factors; the type of mortgage you have, and the location of your home.
Usually, if you miss a few mortgage payments, you start receiving warnings and notifications from your loan company. If, over time, you’re still finding it hard to pay your missed mortgage payments, the loan company may be forced to put your home up for public auction.
The length of time in which you can stay in your house after it is sold in auction varies from state to state. At some point, however, you will need to find yourself a new home.
Fortunately, you have options!
The devastating effect that waiting has on your credit rating cannot be overemphasized. One way to protect yourself is to work out an arrangement with the loan company, called a “deed in lieu of foreclosure”.
This is when you relieve yourself of the ownership of the house, handing it over to the loan company in order for them to save their money on the foreclosure process. Here, you avoid having a foreclosure listed on your credit rating.
Foreclosure can also be avoided by selling your house before it’s lost at the auction. If your loan is paid in full, then all penalties against you and your credit rating will be erased. If your loan isn’t paid in full, you will need to make up the shortfall.
For instance, you owed $200,000 on your home and you sold your home to us for $180,000. You would give that money to the loan company, along with $20,000 to make up the short-fall, 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 foreclosure’ deal, in which the loan company agrees not to go after the difference in exchange for the deed to the house.
At Texas Direct Home Buyers , we’re professional real estate investors. Contact us today at (979) 431-1663 to find out what we can offer you for your house — even if it needs repairs.
I want to avoid giving my house back to the bank in College Station!
Why do people choose to sell their home instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
There’s no doubt, losing a home can be frustrating, but the impact on your financial situation and your credit makes it more advantageous than simply having to wait out the foreclosure process. In fact, going through foreclosure could impact your credit score by as much as 100 to 150 points. The long-term pain of handing your house over to the bank is in no way better than the short-term challenge of selling it.
Interested in learning more about a proactive option besides giving your house back to the bank in College Station? Call us at (979) 431-1663 or fill out the form to get more information