“I have not made payments to the bank for the last few months. Does that means I will be forced to give my house back to the bank in Palm Beach?
No one wishes to turn their house to the bank, but sometimes financial circumstances can take a nasty turn and you simply find it hard to keep up with your financial commitments. Sometimes you are in a situation that you are being forced to give your house back to the bank in Palm Beach Florida, thus leaving you temporarily without a place to stay. Moreover, you can face long term consequences in terms of long-lasting impact to your credit score and hindering your ability to get the house in the future.
It is not an ideal outcome and no one wishes that. Fortunately, there is still a strategy that can help you to protect yourself and get back to track to financial solvency.
Brief Overview of the Foreclosure Process
The process of foreclosure can vary depending on the type of mortgage you have and the location. Mostly, if you miss a few mortgage payments, you will be notified and warned through your loan company. Overtime, if you still fail to make the mortgage payments that you missed earlier, then the loan company will put your home up for public auction.
The question arises, how long can you stay in your house after it is sold and the answer greatly depends on the state where you live. However, you will need to find a new place to stay at some point.
Fortunately, you have options!!
Foreclosure can have a devastating effect on your credit rating and you cannot wait for that. You can protect yourself by working out an arrangement with the loan company which is usually called “deed in lieu of foreclosure”. By this deed you will hand the ownership of the house to the loan company and allow them to save the money they would have otherwise spent on foreclosure proceedings. In return you avoid having a foreclosure listed on your credit rating.
Another option of avoiding foreclosure is to sell your house before the auction takes place. If you manage to make full payment to your loan, then you will face no penalties against you or your credit rating. However, if your loan is not paid in full then you will have to make up for the shortfall.
For example, let us say that you owed $100,000 on your home and you manage to sell your house to us for $90,000. You will make the payment of $90,000 to your loan company along with $10,000 for the shortfall. Thus, your loan will pay off. You can also contact a real estate attorney who can negotiate a deal in lieu of foreclosure with the loan company and see if they can agree to forego the difference in exchange for the deed to the house.
How to avoid giving your house back to the bank in Palm Beach
Most of the people opt to sell their house instead of going through foreclosure. This is because, although they lose their house, the impact on their credit score is considerably less. Going through foreclosure can ruin your credit score by 100 to 150 points. So it is better to sell your house than choosing the long term pain of giving your house back to the bank.
Do you want to learn more about a proactive option besides giving your house back to the bank in Palm Beach? Call us at (561)370-8335 or fill out the form to get more information.