“I’m behind in payments…will I be giving my house back to the bank in Tucson?”
Losing one’s home is a situation nobody desires. However, financial challenges can arise, making it difficult to meet the associated commitments.
Should your financial circumstances escalate, you might find yourself in the unfortunate position of having to consider “Giving My House Back To The Bank” in Tucson, AZ, temporarily leaving you without a place to call home. The repercussions extend beyond the immediate situation, potentially causing a significant and enduring impact on your credit and future housing prospects.
This is far from an ideal outcome, and no one wishes to face such challenges. Fortunately, there is a proactive strategy you can implement today to safeguard yourself and work towards restoring 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 loan company will initiate notifications and warnings. If you continue to neglect these payments, there’s a possibility that your home may be slated for a public auction.
The duration you can remain in your house post-auction varies by state regulations. Eventually, though, it becomes imperative to secure a new place of residence.
Fortunately, you have options!
Delaying action until your home undergoes foreclosure can severely impact your credit rating. A proactive measure to safeguard your financial standing is to negotiate a “deed in lieu of foreclosure” arrangement with the loan company.
In this scenario, you willingly transfer ownership of the house to the loan company, enabling them to save the substantial costs associated with foreclosure proceedings. In return, you avoid the detrimental impact of a foreclosure listing on your credit rating.
Another avenue to sidestep foreclosure is by selling your house before it reaches the auction stage. If your loan is fully settled, there won’t be any further penalties affecting your credit rating. However, if the loan is not entirely paid off, you’ll need to address the shortfall to prevent adverse credit consequences.
Let’s illustrate with an example: Suppose you have a remaining balance of $100,000 on your home, and you decide to sell it to us for $90,000. In this case, you would provide the $90,000 to the loan company, along with an additional $10,000 to cover the shortfall. By doing so, you effectively settle your loan.
If you engage a real estate attorney, there might be an opportunity to negotiate a deed in lieu of foreclosure agreement with the loan company. This arrangement could involve the loan company accepting the deed to the house in exchange for an agreement not to pursue the difference, providing you with a potential resolution through negotiation.
At Red Rock Properties, we’re professional real estate investors. Contact us today at (480) 389-6484 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 Tucson!
Why do people choose to sell their home instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
The difficulty of losing a home is undeniable. However, the repercussions on your financial situation and credit are notably milder if you take proactive steps rather than waiting for the foreclosure process to unfold. Foreclosure could significantly dent your credit score, potentially by 100 to 150 points.
While selling your house might pose short-term challenges, it remains a preferable choice compared to enduring the enduring consequences of surrendering your house to the bank in the long run. The short-term difficulties of selling your house are a more manageable alternative to the enduring pain resulting from foreclosure.