Giving My Property Back To The Bank In Salt Lake City
“I’m late with my mortgage payments… will I be giving my property back to the bank in Salt Lake City?
No one wants to go through losing their home. Sometimes, however, we may find ourselves unable to manage our financial obligations due to life’s challenges.
If your circumstances get too difficult, you may have no choice but to give your property back to the bank in Salt Lake City UT, which will leave you with nowhere to live temporarily. Adding to that, you may face long-term consequences including a hit to your credit (and less ability to get a home going forward).
Nobody wants that to happen. It’s not a desirable outcome. Thankfully, you can take a strategy today that can help you avoid this and get back to financial wellbeing.
Here’s a quick summary of the foreclosure process
Depending on your location and the type of mortgage you have, the foreclosure process will vary.
Normally, if you get behind by a few mortgage payments, your lender will begin issuing you written notices followed by warnings. After a length of time, if you don’t make up the missing payments, your lender may go forward with putting your property up for public auction.
After your house is sold at auction, the length of time that you can stay there depends on which state you live in. Not too long after, however, you will have to find a new living situation.
Thankfully, there are options!
If you simply wait until your home is foreclosed upon, you’ll likely see a major drop in your credit rating. One option that can offer you protection is to try and arrange a “deed in lieu of foreclosure” agreement with your lender.
In this scenario, you’ll willingly return ownership of your property to the lender which will save them a lot of money by avoiding the foreclosure process. And, you’ll be able to walk away without a foreclosure listed on your credit report.
Another way you can avoid a foreclosure is by selling your home before it goes to auction. If the sale proceeds are enough to pay your loan in full, there won’t be any more negative marks against your credit rating. (But, if it’s not enough to cover your loan completely, you’ll need to come up with the remaining balance.)
For example: If you owed $100,000 on your property and you sold it to us for $90,000. The lender would take that money as well as $10,000 more you’d be required to provide to cover the difference in your balance. Once paid, your mortgage would be paid in full. (By working with a real estate lawyer, it may be possible to negotiate a deed in lieu of foreclosure arrangement where the lender will agree not to come after the loan balance in exchange for the property deed.)
Here at Property Seller Solutions, we are professional real estate investors. Get in touch with us today at (801) 876-1036 to see what we can offer you for your property – even if it’s needing repairs.
Can I avoid giving my house back to the bank in Salt Lake City?
Many folks decide it would be better to sell their home versus going through a foreclosure. (Even though in both ways they will no longer be living there.)
They do this because even though losing their home is difficult, the damage done to their credit history will be much less than if they just wait it out and go through foreclosure. The extent to which a foreclosure could have on your credit score is as much as 100 to 150 points. Simply put, the short-term difficulty of selling your home is still favorable to the long-term effects that giving your home to the bank will cause.