Can I give my house back to the bank in Chicago without an expensive foreclosure?
The answer is YES! (but with caveats, read below for more details)
Can I Give My House Back To The Bank Chicago Without An Expensive Foreclosure?
There are many ways to avoid an expensive foreclosure in Chicago.
Your first step if you’re trying to avoid foreclosure in Chicago is to speak with your loan provider immediately to examine your choices to prevent home foreclosure.
You have to take action prior to getting too far 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 so they do not generate losses on your property by going through the actual foreclosure process.
You need to be open and honest with your mortgage company.
Being proactive in communication with your lender will put you in the best position to possibly receive a modification to the current terms of your loan. Explain your specific situation and learn what options they are willing to offer to help get back on track to making regular payments. Don’t simply take enter into a forbearance agreement if you think you can get back on track quickly but consider other options they may be able to offer.
Your mortgage loan bills or your card payments?
You’ll be able to prevent home foreclosure by ensuring you consistently pay your mortgage loan prior to any bills. Your house loan is an essential monthly bill you have. Credit cards should never take priority over your house loan repayment. You can deal with the consequences of not paying your cards a lot easier than you can the implications of failing to pay your mortgage.
Not paying your mortgage loan is the worst thing you can do with regard to your credit score. Getting behind on other sorts of debt like credit cards will never harm your credit as much as getting behind on your home loan. Not paying your mortgage loan could cause you difficulties with your credit cards in any case, so they ought not to be a priority when you have to pay your monthly dues.
Is selling your house in Chicago IL a way to avoid foreclosure?
One way to prevent home foreclosure is to try to pay your house loan off by putting up your property for sale.
After you have communicated with your lender to explore your options you’ll want to sit down and figure your ability to continuing to make payments down the road. For example, if you were furloughed by your employer for a month or two during the beginning of the pandemic but have now been re-hired you’ll likely be able to continue making payments in the future.
However, if you have lost your job and aren’t sure when you will find another one it be time to consider selling the house to avoid missing future payments and eventually face foreclosure.
You could probably be free from the financial hole you are in by selling your house for sufficient cash to pay the home loan off. And sometimes you may be able to have money left to start over again. This is an excellent approach to prevent foreclosure of your Chicago house and avoid a disaster on your credit score at the same time.
Another way to stop property foreclosure in Chicago is to really cut your spending right down to the bare minimum. If you’re able to reduce your expenses adequately you could avoid having to offer to sell the house you love. For anyone who is self-employed, one method to spend less would be to stop renting an office and make a workplace at home. You could also think about selling a car and having just one that you share.
You can definitely proactively do something to stop your home from going into foreclosure and harming your credit and financial situation even further.
We Buy Local Chicago Houses… Can We Make You An Offer?
Here at Blue Ladder Development, we buy houses in Chicago IL 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 630-387-6861 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