Can I give my House in Stockton back to the bank as a way to avoid an expensive foreclosure?
Under some circumstances you can give your home back to the bank voluntarily. This is known as a deed in lieu of foreclosure.
As a borrower when you give your house back to the bank it will still report on your credit report as a foreclosure. This will make buying a new home harder in the future and the affect it will have on your credit score will be devastating! As soon as you feel you may start missing mortgage payments you should call the lender who services your note. The last thing they want to happen is to proceed with a foreclosure on your property. Many times they will work out a payment plan with you to help get you current and in good standing on your mortgage.
A deed in lieu of foreclosure is a benefit for a bank because they don’t have to go through all of the legal proceedings of a foreclosure and it helps to speed up the process of getting rid of the home for them. Also, the lender gets to decide if it is willing to accept the home back to put them in control of the situation. In the case of a home where more money is borrowed on the home than it is worth, a deed in lieu of foreclosure will probably not make sense to them and the lender will most likely not allow a borrower to give their house back to the bank.
There are many ways to avoid an expensive foreclosure in Stockton.
Your first step if you’re trying to avoid foreclosure in Stockton is to speak with your loan provider immediately to examine your choices to Avoid foreclosure in Stockton CA.
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 mortgage company 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 company 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.
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 onto your home loan and consider you caught up on your mortgage. The financial institution will not accommodate you if you do not talk to them about what your situation is ahead of time is and asks for help.
Another option is to ask for a Loan Modification. Asking for a loan modification and getting one however are two different things and we’ve all heard of the stories of banks initiating a trial only to foreclose later without an explanation. The truth be told a modification is difficult because Banks still want you to prove that you can repay the loan even at a new and lowered rate. With many homeowners facing job loss, reduced working hours do to company restructuring, or permanent unemployment, banks ultimately ask themselves how long you will be able to make the required payments.
Should you Pay 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 home 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.
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 will 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 bills.
Is selling your house in Stockton a way to avoid foreclosure?
One sure way to prevent home foreclosure is to try to pay your house loan off by putting up your property for sale.
You could probably be free 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 Stockton house and avoid a disaster on your credit score at the same time.
Another way to stop property foreclosure in Stockton is to really cut your spending right down to the bare minimum. If you’re able to reduce your expenses adequately you could avoid having to offer to sell the house you love. For anyone who is self-employed, one method to spend less would be to stop renting an office and make a workplace at home. You could also think about selling a car and having just one that you share.
You can definitely proactively do something to stop your home from going into foreclosure and harming your credit and financial situation even further.
Can We Buy Your House and Stop Foreclosure Stockton?
We at Westbrook REI we buy houses in Stockton CA 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 (209) 481-7780 and we’ll make you an offer within 48 hours
- If you accept the offer we’ll get the agreements drawn up and come out and visit you in your home to go over the paperwork
- We will buy your house when you want us to (in as little as 7 days) at a reputable local Title Company
In conclusion, giving the house back to the bank/Lender does not stop the foreclosure, strengthen your credit, or resolve your financial liability. All it does is transfer assets from your hands to the banks without due process.
Let us help.