“I’m behind on my mortgage…how can I avoid giving my house back to the bank in Greenville?”
Nobody wants to lose their home, but circumstances may change, and financial responsibilities pile up.
If you can’t afford your monthly loan payment and there are no equity gains to offset it, then the bank may take possession of your home and sell it before the loan term expires. You could wind up temporarily with no place to live and a long-term negative impact to your credit score.
That’s not what anyone wants. That isn’t a great outcome. Fortunately, there is a method you can use right now to assist you in proactively defending yourself and getting back on track toward financial stability. First let’s explore how the foreclosure process works.
Here’s How The Foreclosure Process Works
The procedure for foreclosure varies by state, depending on your loan type and location. Typically, though, it goes something like this.
If you miss a few mortgage payments, most lenders will send you notifications and then warnings. If you don’t pay back the mortgage payments you missed over time, your loan provider may sell your house at public auction. Often the house will go for much less than what you paid for the house in the first place.
The length of time you can reside in your property after it is sold at an auction is determined by the state where you live. Some states require the new owner to offer you time to repay the outstanding loan. However, eventually you will need to look for a new place to live. This sequence of events is typically referred to as foreclosure.
Thankfully, There Are Ways to Avoid Foreclosure
If you wait until your house is foreclosed, your credit score will suffer significantly. A “deed in lieu of foreclosure” is a strategy to safeguard yourself by reaching an agreement with the lender.
When you give the house over to the loan provider to avoid paying out of pocket for foreclosure procedures, it’s known as a “deed in lieu.” A deed in lieu of foreclosure is when a borrower saves significant money by handing their house back to the bank and avoiding foreclosure proceedings. You also get to prevent having your credit rating ruined for years to come. You need to figure out the pros and cons of a deed in lieu and see if it is right for you.
You may also prevent foreclosure by selling your house at an auction before it goes on the market. If after doing so, you sell for enough to so that your loan is totally paid off, you will not be penalized. If the amount it is sold for is less than what you owe, you will need to make up the difference to the bank. Remember though that there are fees for the auction that come out of your proceeds which lower the amount of money you keep. There are also pros and cons to an auction that need to be considered in addition to the auction fee.
Another option is to sell your home as-is to us. Upstate Home Buyers will pay you a fair price for your home with no repairs, no added fees, and no closing costs. This may be a way for you to avoid foreclosure and other hassles as well.
Here’s an example: Assume you owed $100,000 on your home and sold it to us for $90,000. You would send that money to the bank as well as $10,000 to make up for the difference. Your loan would then be paid off and there is no further negative impact on your credit rating. A real estate attorney may even be able to help you avoid paying the extra $10,000 difference.
At Upstate Home Buyers, we are proven skilled real estate investors that have bought multiple properties through upstate South Carolina. To discover what we can do for your property, whether it needs renovations or not, contact us now at 864-300-4857.
Why Would I Sell My House In Greenville Instead of Letting The Bank Have It?
Why would someone choose to sell their house rather than go through foreclosure? (After all, they aren’t living there anymore.)
Losing a house can be devastating, but the long-term consequences for your finances and credit are considerably more than if you wait out and go through the foreclosure process. In fact, going through foreclosure lowers your score considerably for up to seven years. This makes it difficult to buy almost anything else on credit. So, in the short term, selling your house is still a better alternative than enduring a long and consequential foreclosure process or simply giving your house back to the bank.
Upstate Home Buyers will be happy to visit your property and give you an offer on your home. There is no pressure to accept, and you have nothing to lose. Our process is simple and quick. Please consider contacting us about a conversation.