Giving My House Back To The Bank In Los Banos and Surrounding areas

“I’m behind in payments…will I be giving my house back to the bank in Los Banos and Surrounding areas?”

Nobody wants to lose their home. But sometimes financial circumstances turn against you and those financial commitments become simply too much to manage.

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 Los Banos and Surrounding areas California, leaving you temporarily without a place to stay. In addition, there may be long-term consequences, including a dramatic and long-lasting impact to your credit (and your ability to get a house in the future).

No one wants that. That’s not an ideal outcome. Fortunately, there is a strategy you can take today to help you proactively protect yourself and get back on track to financial solvency. So giving my house back to the bank in Los Banos and surrounding areas isn’t the right thing to do.

Turn Over Ownership to Your Lender

This arrangement, called a deed in lieu of foreclosure, requires homeowners to convince their lender to take back the deed to the property in exchange for releasing them from the mortgage. You’ll likely need to prove to your lender that you can’t afford to make your payments.

Can you stop paying mortgage and give the house back?
Request a deed in lieu of foreclosure – A deed in lieu of foreclosure arrangement can help stave off financial hardship. Under its terms, you’ll give your mortgage lender the deed to your home, releasing you from your mortgage responsibilities and avoiding having a foreclosure appear on your credit report.
What is it called when you lose your house to the bank?
Foreclosure is when the bank or mortgage lender takes possession of property that is in default, often against the homeowner’s will. Your mortgage agreement states that if you stop making payments on your loan, the bank can reclaim the property through foreclosure.

Here’s a brief overview of the foreclosure process

The foreclosure process can vary depending on location and the type of mortgage you have.

Usually, if you miss a few mortgage payments, your loan company will start sending you notifications and then 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.

How long 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 to stay.

Fortunately, 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”. Banks aren’t in the habit of buying houses, so you have a long road to hoe here. Tom and Nancy Buy Houses can help you “Avoid Giving Back Your House To The Bank.”

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. And you 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 isn’t paid in full you will need to make up the shortfall).

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.

At Tom and Nancy Buy Houses, we’re professional real estate investors. Contact us today at 559-715-1651.

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 Los Banos and Surrounding areas!

Why do people choose to sell their home instead of going through foreclosure? (After all, they still don’t live in their home anymore.)

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. So 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.

Here are some questions that Tom and Nancy Buy Houses are asked:

Will a bank buy your house from you?
The short answer to your first question is no, banks are not in the business of buying houses from their mortgage loan customers. In fact, if a bank owns a house it is highly motivated to sell the property as quickly as possible because banks are not in the business of buying and selling real estate.
What happens if you stop paying your mortgage and walk away?
Don’t take defaulting on your mortgage lightly. If you live in a recourse state and you stop making mortgage payments, the lender will foreclose on your home. If the proceeds from the foreclosure auction aren’t enough to pay off your debt, the mortgage lender may then sue you for the balance.
What is it called when the bank buys your house?
Definition. Foreclosure is the process that lenders use to take possession of property from borrowers who can’t pay their mortgages. Once in possession of the home, the lender can sell the property to recover the amount of the loan.
How bad does a foreclosure hurt your credit?
Some homeowners with strong credit scores may see their scores drop by as much as 100 points or more after suffering a foreclosure. Homeowners with lower credit scores may see a smaller decline, but only because there’s less room to fall.
How long does a foreclosure stay on your credit?
seven years
Foreclosure information generally remains in your credit report for seven years from the date of the foreclosure. Even if you have a bad credit history or a low credit score, you may qualify for an Federal Housing Administration (FHA) loan.
What is mortgage abandonment?
Not to be confused with defaulting on a mortgage, abandonment occurs when the owner of a property demonstrates that they have no intention of returning to the property and have given up their legal claim to the property.
Can I rebuild credit after foreclosure?
Foreclosures may remain on your credit report for seven years, but maintaining payments on your other credit accounts during those seven years will help balance out the negative entry. Make sure you pay your bills on time, in full and consider applying for a credit card that can help you bounce back.
How do I recover my credit after foreclosure?
How to improve your credit scores after an eviction or foreclosure
  1. Monitor your credit reports and credit scores. Keep a careful eye on your credit reports and scores as you work to rebuild your credit history. …
  2. Work on your payment history. …
  3. Lower your credit utilization ratio. …
  4. Consider a secured credit card.

Contact us today at 559-715-1651 and let the professionals at Tom and Nancy help you keep your credit in good standing.

Interested in learning more about a proactive option besides giving your house back to the bank in Los Banos and Surrounding areas? Call us at 559-715-1651.

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