“I’m behind in payments…will I be giving my house back to the bank in San Antonio?”
Losing your home to the bank is something that no one wants to experience. It’s unfortunate that at times financial commitments become too much to manage if your financial situation changes.
You may be forced to surrender your house to the bank in San Antonio, Texas if your finance challenges progress too far. This could leave you without a home temporarily. This would also be detrimental to your credit and would make buying another home, applying for a credit card or financing for a car nearly impossible in the next few years or longer.
This is not ideal at all. If you find yourself nearing this situation, you can take some proactive steps to protect yourself get back on track to financial solvency.
Here’s a brief overview of the foreclosure process
The foreclosure process can vary depending on location and the type of mortgage you have.
If you miss some mortgage payments, your mortgage company will start sending you notifications which later become warnings, if you continue to not make payments. After several months of being delinquent on your payments, the loan company may put your home up for public auction.
Eventually, you will be forced to leave your house and find a new place to live. The amount of time after the auction depends on the state where you live.
Fortunately, you have options!
As mentioned early, your credit can take a MASSIVE hit if you get foreclosed on. A “deed in lieu of foreclosure” is an arrangement you can make with the loan company which can protect you from foreclosure.
A “deed in lieu of foreclosure” is an agreement in which you hand over the deed of the house to the loan company instead of them foreclosing on you. The bank can save a significant amount of money this way which would have been spent on the foreclosure process. Most importantly, you get to avoid having a foreclosure listed on your credit rating.
Another option to avoid foreclosure is to sell your house before it’s lost at the auction. When you sell your house, your loan will be paid in full or brought current so then there will be no more penalties against you and your credit rating.
For example, if you owe $120,000 on your home, which you sold to Big Buck Home Buyers for $110,000. This money would go to the bank along with the remaining $10,000 in order to pay your loan in full. Another option would be for us to simply take over your payments. So your loan stays in place and we can pay the mortgage company to bring the loan current. This can be an excellent way to overcome a looming foreclosure quickly. (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.
I DO NOT want to give my house back to the bank in San Antonio!
Why do people choose to sell their home instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
This all comes down to the impact on the homeowner’s credit. Even though having to sell your house may not sound ideal, this is much better than losing your home AND suffering through the impact on your financial situation and your credit if you allowed your house to go to foreclosure. A 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.