“I’m behind in payments…will I be giving my house back to the bank in Boca Raton?”
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 Boca Raton FL, 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.
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”.
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 DNS BUYS HOUSES, we’re professional real estate investors. Contact us today at (904)295-0347 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 Boca Raton!
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.
Interested in learning more about a proactive option besides giving your house back to the bank in Boca Raton? Call us at (904)295-0347 or fill out the form to get more information
- Giving your house back to the bank in Boca Raton can be a difficult decision, but it may be the best option if you are unable to make your mortgage payments.
- The process of giving your house back to the bank is known as a “deed in lieu of foreclosure” and involves signing over the deed to your property to the bank in exchange for forgiveness of your mortgage debt.
- While a deed in lieu of foreclosure can be a quicker and less expensive option than going through a full foreclosure process, it can still have a negative impact on your credit score.
- If you are considering giving your house back to the bank, it is important to speak with an experienced real estate attorney who can guide you through the process and help protect your rights.
- In some cases, the bank may require you to try to sell your home before they will consider accepting a deed in lieu of foreclosure.
- If you do decide to give your house back to the bank, it is important to understand that you may still be responsible for any outstanding mortgage debt or other fees associated with the property.
- Depending on your specific situation, you may be able to negotiate with the bank to have some of these fees waived or reduced.
- Giving your house back to the bank can be a difficult and emotional decision, but it may be the best option for you if you are struggling financially and unable to make your mortgage payments.
- If you are considering a deed in lieu of foreclosure, it is important to act quickly and speak with a qualified attorney who can help protect your interests.
- In Boca Raton and throughout Florida, there are many resources available to homeowners who are facing financial difficulties, including counseling services and assistance programs. Don’t be afraid to reach out for help and support.
- What is a deed in lieu of foreclosure?
A deed in lieu of foreclosure is a legal document that allows you to give your home back to your lender in exchange for releasing you from any further liability on your mortgage.
- When is a deed in lieu of foreclosure a good option?
A deed in lieu of foreclosure may be a good option if you are facing foreclosure and:
- You are unable to sell your home for enough money to cover your mortgage debt.
- You are facing financial hardship and cannot afford to make your mortgage payments.
- You are concerned about the negative impact of foreclosure on your credit score.
- How do I start the deed in lieu of foreclosure process?
The first step is to contact your lender and discuss your options. Your lender may be willing to work with you to come up with a plan that meets your needs.
- What are the benefits of a deed in lieu of foreclosure?
There are several benefits to a deed in lieu of foreclosure, including:
- It can save you from the negative impact of foreclosure on your credit score.
- It can help you avoid the legal and financial costs of foreclosure.
- It can allow you to move on with your life and start fresh.
- What are the risks of a deed in lieu of foreclosure?
There are also some risks associated with a deed in lieu of foreclosure, including:
- You may still be responsible for any deficiency balance after your home is sold.
- Your lender may not be willing to work with you.
- You may have difficulty getting approved for a mortgage in the future.
- What are the steps involved in a deed in lieu of foreclosure?
The steps involved in a deed in lieu of foreclosure vary depending on your lender and the specific terms of your loan. However, the general process typically includes the following steps:
- You will need to contact your lender and discuss your options.
- You will need to sign a deed in lieu of foreclosure.
- Your lender will need to accept the deed in lieu of foreclosure.
- Your home will be sold by your lender.
- You will be released from any further liability on your mortgage.
- What are the costs of a deed in lieu of foreclosure?
The costs of a deed in lieu of foreclosure vary depending on your lender and the specific terms of your loan. However, some of the costs that you may incur include:
- Legal fees
- Escrow fees
- Title insurance
- Recording fees
- What is the impact of a deed in lieu of foreclosure on my credit score?
A deed in lieu of foreclosure will likely have a negative impact on your credit score. However, the impact will vary depending on the specific circumstances of your case.
- How can I rebuild my credit after a deed in lieu of foreclosure?
There are a number of things that you can do to rebuild your credit after a deed in lieu of foreclosure, including:
- Make all of your payments on time.
- Keep your credit utilization low.
- Dispute any errors on your credit report.
- Consider getting a secured credit card.
- Wait for time to pass.
- Where can I get more information about deeds in lieu of foreclosure?
You can get more information about deeds in lieu of foreclosure from a variety of sources, including:
- Your lender
- The National Association of Realtors
- The Consumer Financial Protection Bureau
- The Federal Trade Commission