“I’m behind on payments… will I be giving my house back to the bank in ?”
Nobody wants to lose their home. But sometimes financial circumstances change, and keeping up with mortgage payments becomes overwhelming.
If your situation worsens, you may face the possibility of giving house back to the bank in , Maryland, leaving you temporarily without a place to stay. Beyond that, there may be long-term consequences, including a serious impact on your credit score and your ability to secure a home in the future.
To avoid giving house back to the bank, it’s important to explore your options early and take proactive steps to protect your finances and credit.
No one wants that outcome. Fortunately, there are strategies you can take today to proactively protect yourself and get back on track financially.
A Brief Overview of the Foreclosure Process
The foreclosure process varies depending on your location and mortgage type.
Usually, missing a few mortgage payments triggers notifications and warnings from your lender. If the payments continue to go unpaid, the lender may eventually put your home up for public auction, potentially leading to giving house back to the bank.
How long you can stay in your home after it is sold at auction depends on state laws. However, eventually, you may face giving house back to the bank if no alternative solution is pursued.
Options to Avoid Giving Your House Back to the Bank
Waiting until your home is foreclosed can severely damage your credit rating. One option to protect yourself is a deed in lieu of foreclosure, where you voluntarily transfer ownership of your home to the lender. This saves the lender foreclosure costs and can prevent a foreclosure from appearing on your credit report.
Another way to avoid giving your house back to the bank is to sell your home before it goes to auction. If the loan is paid in full, you eliminate penalties and minimize damage to your credit. If the sale doesn’t cover the full balance, you may need to make up the shortfall.
Example: Let’s say you owe $100,000 on your home, and you sell it to us for $90,000. You would give that $90,000 to the lender and pay $10,000 to cover the remaining balance. Your loan would be fully paid, and you avoid the foreclosure mark. In some cases, a real estate attorney can help negotiate a deed in lieu of foreclosure, so the lender may forgive the shortfall in exchange for the deed.
At Olympus Equity, we are professional real estate investors. Contact us today at 443-768-1937 to see what we can offer for your house—even if it needs repairs.
Why Selling Is Better Than Giving Your House Back to the Bank
Many homeowners choose to sell rather than go through foreclosure. Why? Because while losing your home is difficult, the financial and credit impact is far less severe than simply waiting for foreclosure.
Foreclosure can drop your credit score by 100–150 points, making it much harder to secure another mortgage in the future. Selling your house—even at a discount—is often a smarter, less stressful choice than giving your house back to the bank and letting the foreclosure process take over.
By acting proactively, you can protect your credit, avoid unnecessary stress, and regain control of your financial future.
Interested in learning more about a proactive option besides giving your house back to the bank in ? Call us at 443-768-1937 or fill out the form to get more information