“I’m behind in payments…will I be giving my house back to the bank in Nashville?”
Nobody wants to lose their home. But sometimes financial circumstances turn against you and those financial commitments become simply too much to manage.
If your situation progresses too far, you may be forced into the unfortunate situation of having to give your house back to the bank in Nashville, Tennessee, leaving you temporarily without a place to stay. In addition, there may be long-term consequences, including a dramatic and long-lasting impact on your credit and your ability to get a house in the future.
No one wants that. That’s not an ideal outcome. Fortunately, there is a strategy you can take today to help you proactively protect yourself and get back on track to financial solvency.
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 notifications and then warnings. In Tennessee, different loan companies have varying degrees of tolerance for missed payments. Some mortgage companies will forgive only after 1 or 2 months of late payments before proceeding with foreclosure. Other companies may be more lenient giving you up 4 months before starting the foreclosure process.
Either way, the foreclosure process begins when the loan is turned over to a third party foreclosure company and their team of attorneys. In just a few weeks, if you fail to pay back the mortgage payments you missed, the loan company will put your home up for public auction.
How long you can stay in your house after it is sold at an auction is not very long. You will need to find a new place to stay to save yourself some major grief and added stress. The new owners will seek eviction through the court, and if you haven’t moved out, the local Sheriff’s department will remove your possessions.
If you are thinking you are forced to giving my house back to the bank, stop! You have another option. Work with a real estate investor as soon as you are behind in one house payment and you know you cannot make the next payment. Every day counts.
Fortunately, you have options!
If you wait until your home is foreclosed, it can have a devastating effect on your credit rating. One option to protect yourself is to work out an arrangement with the loan company called a “deed in lieu of foreclosure”. This is when you hand over ownership of the house to the loan company so that they save the money they would spend on foreclosure proceedings, which can be significant. And you get to avoid having a foreclosure listed on your credit rating.
You can also avoid foreclosure by selling your house before it’s lost at the auction. If your loan is paid in full then there will be no more penalties against you and your credit rating. If your loan isn’t paid in full you will need to make up the shortfall. To read about ways of stopping a foreclosure, please our article “How to Stop Foreclosure of Your House in Nashville.”
Here’s an example: Let’s say you owed $100,000 on your home and you sold your home to us for $90,000. You would give that money to the loan company, along with $10,000 to make up the shortfall, 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 Southern Homes Investments, we’re professional real estate investors based in the Nashville area. We have stopped foreclosure on houses saving our clients from huge credit penalties.
Time is against the homeowner who is behind in their house payments. As soon as you have missed the first payment and know in your heart you cannot make the second payment, call us right then. Each day interest and penalties add up against you. After 4 months, you will be given notice of foreclosure and will have only 30 -45 days to bring your account up today including all penalties and interest. In the 4th month, the loan is turned over to foreclosure attorneys who will handle the courthouse auction. So it is extremely important you call us immediately to save you money and credit rating. Do read our full article on foreclosure, “What is the Foreclosure Process in Tennessee.”
If you would like to read more about what we do, how we help our clients, and what clients say about us, please visit us at SouthernHomesInvestments.com. Contact us today at 615-235-0612 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 Nashville!
Why do people choose to sell their homes instead of going through foreclosure? (After all, they still don’t live in their home anymore.)
Well, losing a home can be difficult but the impact on your financial situation and your credit is considerably less than if you simply wait out the foreclosure process. In fact, going through foreclosure could impact your credit score by as much as 100 to 150 points. To recover this staggering loss of credit will take months and even years. So the short-term challenge of selling your house is still a better choice than the long-term pain 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 Nashville? Call us at 615-235-0612 or fill out the form to get more information
Disclaimer: David Wright is a licensed real estate agent, and this article is not a solicitation to list your house for sale.