“I’m behind in payments…will I be giving my house back to the bank in New Orleans?”
No one wants to lose their home, but your financial position can go against you and those commitments become unmanagable.
Unfortunately, if your situation goes too far, you may be forced into giving your house back to the bank in New Orleans, LA, temporarily leaving you without somewhere to live. Additionally, there could be long-term repercussions, including a lasting impact to your credit and potential to get a house in the future.
This outcome is not ideal. You can take up a strategy today to help you actively shield yourself and get on the path to financial solvency.
Here’s a brief overview of the foreclosure process
The foreclosure process varies upon location and your mortgage type.
If you miss several payments, your loan company will typically begin sending you notifications and then warnings. If you are unsuccessful in paying back your missed mortgage payments, your home may be put up for public auction by the loan company.
The amount of time you can stay in your house after it is sold in auction depends on the state where you live. However, a new place to stay will need to be found at some point.
Fortunately, you have options!
There can be damaging effects on your credit if you wait until your home is foreclosed on. To protect yourself, one option is to arrange what is called a “deed in lieu of foreclosure” with the loan company.
This is when you give ownership of the house to the loan company so that they save the money they would have spent on the foreclosure process, which can be weighty. By doing this, you avoid having a foreclosure on your credit rating.
Another way to steer clear of foreclosure is by selling your house before it gets lost to auction. If your loan is paid in full, there will be no more penalties against you and your credit rating (you will need to make up the deficit if your loan isn’t paid in full).
For example: Let’s imagine you owed $100,000 on your home and you sold it to us for $90,000. That money would be given to the loan company, along with $10,000 to make up the deficit, and your loan would be paid off. (If you contact a real estate attorney, you may be able to negotiate a deed in lieu of foreclosure deal in which the loan company agrees not to go after the difference in exchange for the deed to the house.)
At Louisiana Direct Home Buyers, we’re professional real estate investors. Contact us today at (504) 224-9066 to find out what we can offer you for your house — even if it needs repairs.
I want to avoid giving my house back to the bank in New Orleans!
Why do people sell their home instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
Losing a home can be burdensome, but the effect on your financial situation and your credit is much less than if you just endure the foreclosure process. In fact, going through foreclosure could affect your credit score by as much as 100 to 150 points. The shorter process of selling your house is still a better choice than the longer process of giving your house back to the bank.
Interested in learning more about a proactive option besides giving your house back to the bank in New Orleans? Call us at (504) 224-9066 or fill out the form to get more information