Can I give my Sacramento house back to the bank without an expensive foreclosure?The answer may be yes… but it’s not exactly as easy as pie. The key is communication with your lender and speaking up earlier than later. Even if you can’t surrender the property to the bank without a foreclosure, there are ways to unload any type of property before foreclosure hits — even a fixer upper.
There are Ways to Avoid an Expensive Foreclosure in Sacramento
Your first step if you’re trying to avoid foreclosure in Sacramento is to speak with your loan provider immediately to examine your choices to prevent home foreclosure. You have to take action prior to getting really behind on your mortgage payments in order to halt house foreclosure. You should contact your financial institution 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 loan organization would rather work something out with you before they experience any loss related to tour property than go through the foreclosure process. Foreclosure is not only costly to you — it also costs lenders attorney’s fees, court costs, lost payment revenue, and more. If you anticipate missing all future payments, your bank may be willing to take the property back under what is called a deed in lieu of foreclosure process.
How to Prepare for Deed in Lieu of Foreclosure
You can’t just drop your keys off at the bank. In order to successfully give your property back to the bank, the lender will want to see that you’ve exhausted all other options besides foreclosure. This can mean putting your home on the market for sale, being behind in mortgage payments, and writing a hardship letter. If the lender agrees that you are definitely on the road to foreclosure, they may agree to let you give back the home without going through the full foreclosure process.
Selling Your Home Instead of Foreclosure
One way to prevent home foreclosure is to try to pay your house loan off by putting up your property for sale. You can often climb out of financial hole you are in by selling your house for sufficient cash to pay the home loan off. This is an excellent approach to prevent foreclosure of your Sacramento house and avoid a disaster on your credit score at the same time.
If your mortgage balance is higher than the value of your home, try selling via short sale. If the lender agrees, they will share in the responsibility of selling the property. They also accept less than the full amount of our outstanding mortgage and forgive the balance. It’s not ideal, but it’s less expensive than the foreclosure route.
We Buy Local Sacramento Houses… Can We Make You An Offer?
Here at California Family Homebuyers we buy houses in Sacramento California 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 (916) 907-6116 and we’ll make you an offer within 24 hours
- If you accept the offer we’ll get the documents drawn up and come out and visit you in your home to go over the paperwork
- We buy your house when you want us to (in as little as 7 days) at a reputable local closing agent