Giving My House Back To The Bank In Louisville

“Falling behind on payments…will I be surrendering my house to the bank in Louisville Kentucky?”

When financial struggles mount, you may find yourself facing the harsh reality of surrendering your house to the bank in Louisville, Kentucky. This distressing scenario could leave you temporarily homeless and negatively impact your credit score, hindering future house purchases. Despite the bleak outlook, rest assured there are proactive steps to shield your interests and guide you back toward financial stability.

Here’s A Brief Overview Of The Foreclosure Process

The procedures of foreclosure can differ based on the location and the nature of your mortgage.

Typically, falling behind on several mortgage payments prompts your loan company to initiate notifications and eventually warnings. If you continuously neglect to settle the missed mortgage payments, your loan company might auction your house to the public.

The duration you’re allowed to remain in your house after it’s sold in an auction is subject to the laws of your residing state. However, you will eventually need to secure alternative housing after the house has been taken by the bank.

Fortunately, You Have Options!

If you allow your house to undergo foreclosure, the impact on your credit score can be quite severe. To protect yourself, you might consider a “deed in lieu of foreclosure,” an agreement you work out with your bank where you willingly transfer the house ownership back to them. This helps the bank save money on costly foreclosure proceedings and keeps foreclosure off your credit report.

Another way to prevent foreclosure is to sell your house before it goes to auction. If the loan is fully settled, there won’t be any further penalties and your credit score won’t be impacted. However, if the loan isn’t fully paid, you’ll need to cover the remaining balance.

For instance, if your house debt stands at $100,000 and you manage to sell your house to us for $90,000, you’d then give that amount to the bank, along with an additional $10,000 to settle the shortfall, thereby clearing your loan. Consulting with a real estate attorney could potentially help you negotiate a deed in lieu of a foreclosure deal where the bank agrees not to pursue the difference in exchange for the house deed.

At Louisville Cash Real Estate, we’re a team of experienced real estate investors. Reach out to us today at (502) 461-1450 to learn what we can offer for your house, even if it requires repairs.

I Want To Avoid Giving My House Back To The Bank In Louisville Kentucky!

Why would someone elect to sell their property instead of succumbing to foreclosure? The rationale hinges on the lesser long-term repercussions on financial health and credit history. The emotional toll of losing a home is undoubtedly substantial; however, suffering foreclosure has the potential to drastically reduce one’s credit score, potentially by a whopping 100 to 150 points. Consequently, regardless of the immediate challenges that come with selling one’s house, it emerges as the more prudent choice over the extended financial distress of surrendering your house back to the bank. This decision to sell rather than face foreclosure can serve as a preventive measure, maintaining one’s credit health and opening up future possibilities for homeownership or other financial opportunities. It’s a difficult choice, but a necessary one, to steer clear of more dire financial consequences down the road.

Interested in learning more about a proactive option besides giving your house back to the bank in Louisville Kentucky? Call us at (502) 461-1450 or fill out the form to get more information