Will my credit score be affected?
If you have missed a mortgage payment, the lender can report it to the credit bureaus. Delinquencies, late, and missed payments will have a negative impact on your credit score.
Can I just give the house back to the bank?
No. The bank does not want your property. If you do not qualify or want to do a mortgage modification, your lender might suggest a short sale.
A short sale is actually a very lengthy process, but it is when a home cannot be sold for enough money to cover the current debt on it. A short sale means the loan is being paid off short, not in full.
To complete a short sale, the lender must approve the sale and accept the reduced amount. A homeowner must provide documentation to the lender to qualify for a short sale. The documents needed are similar to the modification paperwork.
During a short sale, you will be required to put your property on the market with a real estate agent and show it to potential buyers. Once you get an offer to purchase, the lender will review it. Depending on the type of loan and lender, this review process can take several weeks. A buyer must be willing to wait for the lender’s decision. The short sale will be reported to the credit bureaus as something like debt settled, not paid in full. It will be on your credit history for seven years.
If a homeowner is facing foreclosure, a short sale or modification are far better options, and for any borrower tackling this problem, it is a good idea to speak with a tax advisor, a credit counselor, or an authorized local or government agency set up to handle mortgage modifications and home loan payment issues.
What are my other options?
At our company, As Is Now, we know for some people selling the property is going to be the best option. We make the process simpler by working directly with homeowners. There are no real estate agent fees or commission, and there will be no buyers going through your home. We make fair-market cash offers on property that meets our criteria, and we do it all within 24 hours.
Contact us here at As Is Now today for a free consultation. There is no obligation. We will answer all your questions and can go over how our process might benefit you.