I’m behind in payments…will I be giving my house back to the bank in Fort Myers?
Nobody ever wants to lose their home, but sometimes life’s financial challenges become overwhelming, and those commitments that once seemed manageable start to feel impossible.
If you fall too far behind on mortgage payments, you may find yourself facing the difficult decision of having to give your house back to the bank in Fort Myers, FLORIDA. This could leave you without a place to stay temporarily, and the long-term consequences can be severe, including a significant hit to your credit score, which could make it harder for you to secure a home in the future.
This outcome is less than ideal, but fortunately, you can take action today to protect yourself and start the journey toward financial recovery. Let’s take a look at the foreclosure process and some potential strategies to avoid it.
A Brief Overview of the Foreclosure Process
The foreclosure process can vary depending on where you live and the type of mortgage you have. However, the general steps usually follow this pattern:
- Missed Payments: If you miss a few mortgage payments, the loan company will begin sending you notifications, followed by warnings.
- Auction: If the missed payments are not resolved, the lender may place your home up for auction. The timeline before your home is sold varies by state.
- Eviction: Once your home is sold at auction, you may have to move out, and depending on the state, the time you have to stay in your house could be limited.
In any case, you’ll eventually need to find a new place to live. But don’t panic — you still have options.
What Are My Options?
If you wait until the foreclosure process is complete, the damage to your credit score can be severe. One way to protect your financial future is by working with the loan company on a “deed in lieu of foreclosure.” This means you give the house back to the lender, and in return, they save money on the costly foreclosure process, and you avoid the devastating effects of foreclosure on your credit report.
Alternatively, if you sell your home before it goes to auction, you can pay off your mortgage in full, and once your loan is paid, your credit will no longer be negatively affected. If the sale price of your home doesn’t fully cover the mortgage, you will need to make up the difference — but this option can still be far less damaging to your credit than foreclosure.
For example, let’s say your mortgage is $100,000, and you sell your house for $90,000. You would give the $90,000 to the lender and cover the remaining $10,000, leaving your loan paid off. In some cases, with the help of a real estate attorney, you could negotiate a deed in lieu of foreclosure, where the lender agrees not to pursue the remaining balance in exchange for the deed to the house.
I Want to Avoid Giving My House Back to the Bank in Fort Myers!
So why do many homeowners choose to sell their homes rather than face foreclosure? While it’s emotionally difficult to leave your home, the financial impact of foreclosure can be even worse. Foreclosure can lower your credit score by as much as 100 to 150 points, making it much harder to secure loans, credit, or even rent a property in the future.
Selling your house before foreclosure occurs is often the better choice. Yes, you may face short-term challenges, but it will be far less damaging than letting the bank take over your property and risk your credit score for years to come.
At Core Real Estate Properties, we are professional real estate investors, and we understand that every situation is unique. If you’re in a tough spot with your mortgage, contact us today at 239-360-3176 to see how we can help you sell your home, even if it needs repairs. Our team is here to provide a fair and fast solution to help you avoid foreclosure and get back on track.