Bank Foreclosure and Giving My House Back In Toledo

“I’m behind in my house payments… I need to consider bank foreclosure and giving my house back in Toledo!”

Nobody wants to lose their home. But, sometimes financial circumstances turn against you, and those financial commitments become too much to manage, resulting in bank foreclosure and giving my house back in Toledo. Let’s say you lose your job, due to Covid. Your plant closes and sends your job overseas. You’re a long-term employee and they replace you with a younger worker who they pay less. Or, you get divorced, and lose the beautiful home you’ve lived in for years, and raised your kids in. Believe me, stuff happens!

Borrowing from Peter to pay Paul, in hopes that things will turn around only last for so long. And sometimes, they just don’t. If your situation progresses too far, you’ll be forced to consider bank foreclosure and giving my house back in Toledo. That could leave you without a place to stay, at least temporarily. In addition, bankruptcy can cause dramatic long-term consequences as well; such as, a dramatic (and long-lasting) impact to your credit, your ability to get a house and in some cases an apartment in the future, buy a new car, and even get a job to name a few! More and more businesses are asking if you’ve ever declared bankruptcy. You can’t lie about it. That’s fraud.

Some people think declaring bankruptcy is an easy way out of debt. But, nobody really wants all the additional pain and suffering it can cause, if they can help it. Fortunately, there’s a strategy you can take today to avoid foreclosure, if you find yourself in that unfortunate situation, and minimize your losses. It can help get you back on the road to recovery and financial solvency too.

Here’s a brief overview of the foreclosure process

The foreclosure process can vary depending on location and the type of mortgage you have.

Usually, if you miss a few mortgage payments, your loan company will start sending you Late Notices, and then Foreclosure Warnings. Eventually, if you continue being behind (in arrears) in your payments and you fail to catch up with the payments you missed, then the loan company can declare your mortgage loan in default and put your home up for public auction to satisfy the debt.

How long you’re allowed to stay in your house after its been sold “on the courthouse steps” at auction depends on the state in which you live. But at some point, you’ll need to find a new place to live, and can be forcibly removed by the sheriff’s department if you don’t move out!

You have some options!

ONE.  As we mentioned before, if you wait until your home is foreclosed on, it can have a devastating effect on your credit rating for at least 7 years. One option to protect yourself is to work out an arrangement with the loan company called a “deed in lieu of foreclosure”.

That’s when you voluntarily hand over ownership of the house to the mortgage company, which saves them the money they would have had to spend on foreclosure proceedings, which can be substantial. And in return, you get to avoid having “foreclosure” listed on your credit.

TWO.  Another way to avoid losing your house at auction is “pre-foreclosure” – selling it before it goes into foreclosure. If your loan is paid-in-full, then there’s no more fees levied against you, and your credit rating stops taking a hit. However, if your loan isn’t paid-in-full, either the buyer or you will still have to make up the difference (arrearage) somehow before all is forgiven with the loan company. Here’s a simple example….

Let’s say you owe $100,000 on your home and you sold it to us for $90,000 to avoid foreclosure. You would give that money to the loan company, along with an additional $10,000 to make up the difference, and your loan would be paid off. Also, if you contact a real estate attorney, he or she might be able to negotiate a deed in lieu of foreclosure in which the loan company agrees to forgive the difference, in exchange for a quick settlement and the deed to the property.

THREE.  At Midwest Fix-and-Flip, we’re professional real estate investors who help people avoid bank foreclosure and giving my house back in Toledo by buying their homes from them before they go to auction.. Contact us today to find out how we can help you with your financial problems, and make you an offer on your house — even if it needs repairs.

I want to avoid bank foreclosure and giving my house back in Toledo!

Why do people choose to sell their home pre-foreclosure instead of going through foreclosure? (After all, they still won’t be able to live in the house anymore, in most cases.) The reason is because losing a home can be emotionally and financially disruptive, at best to one’s life (incl., new schools for the kids, a new route to work complete with traffic, new stores, new friends, downsizing and getting rid of belongings, etc.).

However, the impact to your finances that you’ll need to do business in the future can be far less than if you simply try to ride out the foreclosure process. In fact, going through foreclosure could negatively affect your credit rating by as much as 100 to 150 points! And, that can take years to recover. So in the end, the short-term challenges with selling your house “pre-foreclosure” are a much better choice than the long-term implications of losing your house to the bank.

Interested in learning more about pre-foreclosure options in Toledo, rather than giving your house back to the bank?

Call us at (419) 930-9900

Or, fill out this brief form to receive more information!

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