Giving My House Back To The Bank In Columbus Ohio

Understanding the Foreclosure Process

The foreclosure process varies by location and depends on your mortgage type. If you miss several mortgage payments, your lender will begin by sending warnings and notifications. If the missed payments continue, your lender may initiate foreclosure proceedings and eventually sell your home at a public auction.

The timeline for how long you can stay in your home after it’s sold at auction depends on Ohio’s foreclosure laws. Regardless, you must arrange alternative housing if the process moves forward.

Options to Avoid Foreclosure

Foreclosure is not your only option — and it’s certainly not the best. Here are two common alternatives that can help you avoid the long-term consequences of giving my house back to the bank:

1. Deed in Lieu of Foreclosure
   A deed in lieu of foreclosure is an agreement between you and the lender where you voluntarily transfer ownership of the property to the lender. In return, the lender forgives the foreclosure process, saving both parties significant time and money. This option prevents a foreclosure from being recorded on your credit history, which can mitigate damage to your credit score.
2. Sell Your House Before Foreclosure
   Selling your house before it goes into foreclosure can help you settle your mortgage debt and potentially preserve your credit score. You can avoid further penalties if the sale price covers the amount owed on your mortgage. Even if the sale doesn’t fully cover the debt, you can negotiate with your lender to forgive the remaining balance through a short sale or similar agreement.

Example:
If you owe $100,000 on your home and sell it for $90,000, you’d pay the lender the $90,000 proceeds plus $10,000 to cover the shortfall. In some cases, lenders might agree to waive the remaining $10,000 in exchange for the deed, particularly if you negotiate with the help of a real estate attorney.

Why Choose to Sell Instead of Foreclosure?

Although selling your home means you’ll no longer live in it, it has significant advantages over foreclosure. For one, the impact on your credit score is less severe. A foreclosure can lower your credit score by 100 to 150 points, making qualifying for future loans or housing harder. On the other hand, selling allows you to resolve your debt more amicably, minimizing long-term financial harm.

How We Can Help

At Columbus Ohio House Buyers, we specialize in helping homeowners navigate difficult situations like foreclosure. We’re professional real estate investors who buy homes as-is, so you don’t need to worry about making repairs. Contact us at (614) 502-2614 to discuss your options and learn how we can help.

Take Control of Your Financial Future

Facing foreclosure can feel overwhelming, but you don’t have to go through it alone. By exploring alternatives like selling your house or negotiating a deed in lieu of foreclosure, you can avoid the lasting consequences of giving my house back to the bank in Columbus, Ohio.

Interested in learning more about a proactive option besides returning your house to the bank in ? Call us at (614) 502-2614 or fill out the form to get more information