“I’m behind in payments…will I be giving my house back to the bank in Lagrange?”
No one desires to relinquish their residence. However, occasionally, economic conditions take a turn for the worse, rendering those monetary obligations excessively burdensome to handle.
If your circumstances worsen significantly, you might find yourself compelled to surrender your property to the bank in Lagrange, Georgia, resulting in a temporary lack of housing. Furthermore, there can be enduring repercussions, such as a substantial and enduring effect on your creditworthiness (and your capacity to obtain housing in the future).
Nobody desires such an outcome, as it is far from ideal. However, the good news is that there exists a strategy you can implement today to proactively safeguard yourself and regain financial stability.
Here’s a brief overview of the foreclosure process
The foreclosure process can vary depending on location and the type of mortgage you have.
Typically, when you fall behind on a few mortgage payments, your lender will initiate a series of notifications and subsequent warnings. If you continue to neglect repayment of the missed mortgage installments over an extended period, the lender may proceed with a public auction to sell your home.
The duration of your stay in the house after it is sold in an auction depends on the specific regulations of the state in which you reside. Nevertheless, it is essential to acknowledge that eventually, you will need to secure alternative accommodations.
Fortunately, you have options!
Delaying until your home undergoes foreclosure can severely impact your credit score. To safeguard yourself, one option is to negotiate an agreement with the loan company known as a “deed in lieu of foreclosure.” This arrangement allows you to transfer the property’s ownership to the lender, thereby avoiding the detrimental consequences of a foreclosure.
In this scenario, you voluntarily transfer ownership of the house to the loan company, enabling them to save the substantial expenses associated with foreclosure proceedings. Consequently, you can prevent a foreclosure from being recorded on your credit rating, thus mitigating its negative impact.
Another alternative to foreclosure is to sell your house before it is lost at auction. If you can fully repay your loan, you will not face any further penalties, and your credit rating will remain unaffected. However, if your loan amount is not fully covered by the sale, you will need to make up the shortfall to settle the outstanding balance.
Here’s an illustration: Suppose your outstanding loan amount on the home is $100,000, but you sell the property to us for $90,000. In this case, you would provide the $90,000 to the loan company to cover most of the loan, and you would also need to contribute an additional $10,000 to compensate for the shortfall. By doing so, you would be able to fully pay off your loan. Alternatively, by seeking assistance from a real estate attorney, you might explore the possibility of negotiating a deed in lieu of foreclosure arrangement with the loan company. This agreement entails transferring the property’s deed to the loan company, potentially absolving you from any obligation to repay the difference.
At Flagship REI, we’re professional real estate investors. Contact us today at 706-918-9133 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 Lagrange!
Why do people choose to sell their home instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
While experiencing the loss of a home can be challenging, the repercussions on your financial status and creditworthiness are significantly less severe compared to waiting out the foreclosure process. In fact, undergoing foreclosure could potentially lead to a decline in your credit score by as much as 100 to 150 points. Therefore, despite the short-term difficulties involved in selling your house, it remains a preferable choice over the long-term consequences of surrendering your property to the bank.