Can I give my house back to the bank in San Antonio without an expensive foreclosure? Are there other things that I need to consider about giving back the house?
The answer is YES! And YES! (but with caveats, read below for more details)
Can I Give My House Back To The Bank San Antonio Without An Expensive Foreclosure?
There are many ways to avoid an expensive foreclosure in San Antonio.
Your first step if you’re trying to avoid foreclosure in San Antonio is communication. Speak with your loan provider immediately to discuss and examine your choices to prevent home foreclosure.
Often times you will have multiple options, but many of them require the assistance or approval of your loan provider and you can’t get that without talking to them. Also, some of these options take longer to complete than others so you need to choose an option that fits in your timeline.
You have to take action prior to getting too far behind on your mortgage payments in order to halt house foreclosure. You should contact your financial institution once you know you are likely to miss a home loan payment and inform them what is going on with your financial situation.
Your mortgage loan organization would rather work something out with you so they do not generate losses on your property by going through the actual foreclosure process.
You need to be open and honest with your mortgage company.
It may not be fun to communicate with your mortgage company but it is almost always a good idea.
They may work something out with you that cuts down your rate of interest, which would reduce your monthly payment. In case you miss one or two payments but then are capable of start paying once again, they can usually add those repayments back to your home loan and consider you caught up on your mortgage.
Sometimes this is helpful and sometimes this is just kicking the can down the street…Only you can decide if something like that would be truly helpful to you or you need to find another sollution.
The financial institution will not accommodate you if you do not talk to them about what your situation is ahead of time and ask for help.
Your mortgage loan bills or your card payments?
You’ll be able to prevent home foreclosure by ensuring you consistently pay your mortgage loan prior to any bills. Your house loan is an essential monthly bill you have. Credit cards should never take priority over your house loan repayment. You can deal with the consequences of not paying your cards a lot easier than you can the implications of failing to pay your mortgage.
Sometimes you have to get rid of a lot of things to get caught back up on your mortgage, but you need to think about what is most important at this time. Most of those things you can get back once you are back on your feet.
Not paying your mortgage loan is the worst thing you can do with regard to your credit score. Getting behind on other sorts of debt like credit cards will never harm your credit as much as getting behind on your home loan. Not paying your mortgage loan could cause you difficulties with your credit cards in any case, so they ought not to be a priority when you have to pay your monthly dues.
Giving My House Back to The Bank
Many lenders will allow you to do what is called a Deed in Lieu of Foreclosure. This basically means that you are signing the deed to the house over to the bank in exchange for them agreeing not to foreclose on your property.
Yes, you will still be giving up the house…but, having a few late or missed payments toward your mortgage will not have near the effect on your credit score that having a foreclosure will…
Make sure that you get this agreement in writing from your bank! You do not want your paperwork being lost and you end up getting foreclosed on while you were thinking it had bee stopped.
Lenders are not required to accept your deed in lieu of foreclosure. So again, you want to make sure that you are in communication with the lender so that you keep as many options open to you as possible.
Is selling your house in San Antonio TX a way to avoid foreclosure?
One way to prevent home foreclosure is to try to pay your house loan off by putting up your property for sale.
Many times you can free yourself from the financial hole you are in by selling your house for sufficient cash to pay the home loan off. And sometimes you may be able to have money left to start over again. This is an excellent approach to prevent foreclosure of your San Antonio house and avoid a disaster on your credit score at the same time.
There are many investors who can buy your house quickly and for cash so that you can avoid the foreclosure. Some investors have the means and resources to get this done in just a few days and some do not. So make sure if you choose this path that you only work with someone with years of experience in these types of transactions.
You can definitely proactively do something to stop your home from going into foreclosure and harming your credit and financial situation even further.
We Buy Local San Antonio Houses… Do You Want Us To Make You An Offer?
Here at Sell My San Antonio House, we buy houses in San Antonio TX and surrounding areas and we may be able to help you get out of your house and avoid foreclosure.
The process is really simple:
- Fill out the form over here, or call us at (210) 201-6644 and we’ll make you an offer within 24 hours
- If you accept the offer we’ll get the documents drawn up and come out and visit you in your home to go over the paperwork
- We buy your house when you want us to (in as little as 7 days) at a reputable local closing agent
That’s it! You also can read our other blog articles to learn more.
It will be interesting to see how banks are going to respond to all of the mortgages behind as a result of COVID.