“I’m behind in my mortgage payments… will I be giving my house back to the bank in San Antonio?”
Nobody wants to lose their house. But occasionally financial situations turn against you and those financial commitments become simply too much to manage.
If your situation progresses too much, you could be forced into the unfortunate situation of having to give your home back to the lender in San Antonio Texas, leaving you without a place to stay. In addition, there might be long-term consequences, including a long-lasting and dramatic effect to your credit (and your ability to get another home in the future).
Nobody wants that. It’s definitely not an ideal outcome. Fortunately, there’s a strategy that you can take now to help you proactively protect yourself and get back on track to financial solvency.
Here’s a brief overview of the foreclosure process
The foreclosure process may vary depending on your location and the type of loan you have.
Usually, if you miss a few payments, your mortgage company will begin sending you notifications and then warnings. As time passes, if you fail to pay back the loan payments you’ve missed, the mortgage company may place your house up for public auction.
How long you can remain in your home after it is sold at auction depends on the state where you live. Sooner or later, however, you’ll have to find a new place to stay.
Fortunately, you have options!
If you wait until your home is foreclosed upon, it can have a disastrous impact on your credit score. One solution to protect yourself would be to work out an arrangement with the mortgage company known as a “deed in lieu of foreclosure”.
This is when you hand over ownership of the home to the mortgage company so that they save the money they’d have to spend on foreclosure proceedings, which can be significant. And you can avoid having a foreclosure recorded on your credit score.
You may also avoid foreclosure by selling your home before it is lost in the auction. If your loan is paid in full then there will be no more penalties against you or your credit rating. (If your loan is not paid in full then you’ll have to make up the difference).
Here’s an example: Let us say you owed $100,000 on your house and you sold your it to us for $90,000. You would give that money to the mortgage company, along with $10,000 to comprise the short-fall, and your loan would be paid in full. (Should you contact a real estate attorney, you could possibly negotiate a deed in lieu of foreclosure deal where the mortgage company agrees not to go after the difference in exchange for the deed to the home.
At Lone Star Real Estate Solutions LLC, we are professional real estate investors. Contact us today at 210-807-6567 to find out what kind of we can make on your home – regardless of whether it needs repairs.
I want to avoid giving my house back to the bank in San Antonio!
Why do people decide to sell their house rather than going through foreclosure? (After all, they still do not live in their house anymore.)
Well, losing a house can be hard, but the financial impact and your credit are going to be affected considerably less than if you just wait out the foreclosure process. Actually, going through a foreclosure can impact your credit score by as much as 100 to 150 points or more. So the short-term challenge of selling your home is still a much better option than the long-term effect of giving back your house to the bank.
Are you interested in learning more about a proactive option instead of giving your house back to the bank in San Antonio? Give us a call at 210-807-6567 or fill out the form for additional information