“I’m behind on payments…will I be giving my house back to the bank in Kalamazoo?”
No one wants to lose their home but sometimes financial circumstances turn against you and those financial commitments become simply too much to manage.
Please know you have options; try and think it through before you put yourself at a disadvantage.
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 Kalamazoo potentially leaving you temporarily without a place to stay. 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.
Fortunately, there is a strategy you can take today to help you proactively protect yourself and get back on track to financial solvency.
Overview-Foreclosure Process
The foreclosure process can vary depending on your location and the type of mortgage that you have on your home.
Usually, if you miss a few mortgage payments, your loan company will start sending you notifications followed by warnings. Over time, if you fail to pay back the mortgage payments you missed, the loan company may put your home up for public auction.
The length of time 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.
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”.
This is when you hand over ownership of the house to the loan company so that they save the money they would spend on foreclosure proceedings, which can be significant. You also get to avoid having a foreclosure listed on your credit rating.
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 rating. (If your loan is not paid in full, you will need to make up the shortfall).
As an example, let’s say you owed $100,000 on your home and you sold your home to us for $90,000. 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 foreclosure deal in which the loan company agrees not to go after the difference in exchange for the deed to the house.
At Ryan Buys Houses, we’re professional real estate investors. Contact us today at (269) 775-4095 to find out what we can offer you for your house — even if it needs repairs.
Avoid Giving Your House To The Bank In Kalamazoo
Why do people choose to sell their home instead of going through foreclosure?
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. 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.
We are here to help. Please feel free to reach out and we can discuss your options.
Interested in learning more about a proactive option besides giving your house back to the bank in Kalamazoo? Call us at (269) 775-4095 or fill out this form and we will reach out to get more information on your situation and see how we can help.
