“I’m behind in payments…will I be giving my house back to the bank in Hollywood?”
Nobody wants to lose their home, but sometimes financial circumstances make it too difficult to manage financial commitments.
If your financial situation worsens, you may be in the difficult position of having to surrender your house to the bank in Hollywood, FL. This could leave you without a place to live for a period of time. Moreover, there may be severe and long-lasting repercussions, such as a major decline in your credit score and difficulty obtaining a house in the future.
No one wants that. That’s not an ideal outcome. Luckily, there is a proactive strategy you can implement today to safeguard yourself and regain financial stability.
Additionally, we have put together a stop foreclosure guide that outlines how to avoid foreclosure in today’s real estate market.
Here’s a simple overview of the foreclosure process.
The foreclosure process can vary depending on location and the type of mortgage you have.
When you miss a few mortgage payments, your loan company will typically start sending you notifications and warnings. If you fail to pay these missed payments over time, the loan company may eventually put your home up for public auction.
Depending on the state where you live, the amount of time you can stay in your house after it is sold in auction varies. Eventually, you will have to find a new place to live.
Fortunately, you have options to avoid foreclosure altogether!
If you wait until your home is foreclosed, it can have a devastating effect on your credit rating. To protect yourself, you can work out an arrangement with the loan company called a “deed in lieu of foreclosure”. This option can help you avoid foreclosure and its negative impact on your credit score.
When you’re unable to keep up with your mortgage payments, you can choose to give ownership of your house to the loan company. This way, the company can save the money that they would otherwise spend on foreclosure proceedings, which can be quite substantial. By doing this, you can avoid having a foreclosure listed on your credit report.
If you’re facing foreclosure, you could consider selling your house before it goes to auction. This would help you avoid losing it. However, if you still owe money on your loan, you’ll need to make up the shortfall. If you can pay off the loan completely, you won’t face any further penalties and your credit rating will remain unaffected.
Here’s 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 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, saving you money.
At KeyCashin, we’re professional real estate investors who can buy your house fast, helping you avoid the foreclosure nightmare altogether. Contact us today at (754) 714-7497 to find out what we can offer you for your house — even if it needs extensive repairs.
I want to avoid giving my house back to the bank in Hollywood!
Why do people choose to sell their home instead of going through foreclosure, even though they no longer live in the property?
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, and it will continue to negatively affect your creditworthiness for years to come. Potentially, harming your ability to get approved for a new home loan or even be approved as a tenant. So the short-term challenge of selling your house is still far better than the long-term pain and consequences of allowing the foreclosure process to go through.