Could it be possible that I might have to hand over my house to the bank in EdwardsvilleIL due to falling behind on payments?
Facing the possibility of losing one's home is a distressing situation foranyone. When financial hardships arise, meeting financial obligations can become extremely challenging.
If your circumstances worsen, you may find yourself in the unfortunateposition of having to surrender your house to the bank in Edwardsville IL, which would leave you temporarily without a place to call home. Additionally, this could have long-lasting effects, such as a significant and prolonged impact on your credit score, potentially affecting your ability to secure housing in the future.
Undeniably, this is a situation nobody desires, as it is far from ideal.Nevertheless, the good news is that taking a proactive approach now can help protect yourself and work towards restoring your financial stability.
Here’s a brief overview of the foreclosure process
The foreclosure process can vary depending on where you liveand the type of mortgage you have. Generally, if you fall behind on a few mortgage payments, your loan company will start sending you notifications and warnings. If the missed payments persist, your loan company may decide to auction your home publicly. The period during which you can stay in your house after the auction differs from state to state. However, eventually, you will need to secure a new place to live.
Fortunately, you have options!
Failing to take action before your home is foreclosed can have a significantnegative impact on your credit score. To protect your credit rating, you have the option to negotiate a "deed in lieu of foreclosure" agreement with your loan company.
In a "deed in lieu of foreclosure" arrangement, you transferownership of your house to the loan company, saving them the substantial costs associated with foreclosure proceedings. In return, you can prevent a foreclosure from being recorded on your credit report.
Another way to avoid foreclosure is by selling your house before it goes toauction. If you can fully pay off your loan, you can prevent any further damage to your credit rating. However, if your loan is not entirely paid off, you will need to cover the remaining amount.
For instance, if you owe $100,000 on your home and sell it for $90,000, youcan give the loan company $90,000 and cover the remaining $10,000 to pay off your loan. Alternatively, you might consult a real estate attorney to explore the possibility of negotiating a "deed in lieu of foreclosure" agreement with the loan company, where they take ownership of the house and agree not to pursue the shortfall.
At Cardinal Creek Properties, we are experienced real estate investors. Nomatter the condition of your property, you can contact us at (314) 467-8137 today to learn about the offers we can make for your house.
I want to avoid giving my house back to the bank in Edwardsville IL!
Opting to sell their home rather than going through foreclosure is a choicemade by many individuals, driven by several reasons. Firstly, selling the property allows them to fully repay their mortgage, preventing any further damage to their credit score. Moreover, experiencing a foreclosure can be emotionally draining for homeowners and their families, whereas selling the property can bring closure and aid in moving on from the ordeal.
While losing one's home is undoubtedly emotionally challenging, thefinancial and credit repercussions are significantly less severe compared to enduring the foreclosure process. Foreclosure can lead to a credit score decrease of as much as 100 to 150 points. Consequently, selling your house might be a more viable short-term solution rather than facing the long-term consequences of surrendering your property to the bank.
If you seek a proactive alternative to surrendering your property to the bank in Edwardsville IL, we are here to assist you. Don't hesitate to reach out to us at (314) 467-8137 or fill out the form for further information and support.
