“I’m behind on my mortgage payments… am I at risk of giving my house back to the bank in Plymouth, Cape Cod, or the Boston Area?”
No homeowner wants to face this situation, but financial hardships can make it difficult to keep up with mortgage payments. If your financial struggles continue for too long, you could end up giving your house back to the bank in MA, leaving you without a place to live and facing serious credit consequences. A foreclosure on your record can make it much harder to buy a home in the future, and the damage to your credit score can take years to repair.
But here’s the good news—you don’t have to just wait for foreclosure to happen. There are steps you can take right now to regain control of your situation and avoid the worst-case scenario.
Understanding the Foreclosure Process
Foreclosure laws vary by state, but in most cases, missing multiple mortgage payments triggers a series of warnings from your lender. If the missed payments continue, the lender may take legal action and move forward with foreclosure proceedings. Eventually, your home could be auctioned off to recover the outstanding debt.
After the foreclosure sale, your timeline for vacating the property depends on local laws. In some cases, you may have a brief period to stay, but eventually, you’ll need to find new housing. The emotional and financial toll of this process can be overwhelming, but there are alternatives that can help you avoid giving your house back to the bank in Boston, Cape Cod, or Plymouth.
Options to Avoid Foreclosure
If foreclosure is looming, taking action sooner rather than later can help you avoid severe credit damage. Here are two common strategies:
- Deed in Lieu of Foreclosure – This arrangement allows you to voluntarily transfer ownership of your home to the bank instead of going through foreclosure. In return, the lender may forgive the remaining debt, saving you from having a foreclosure on your record. While this still impacts your credit, it’s far less damaging than a full foreclosure.
- Selling Your Home for Cash – If foreclosure is approaching, selling your home before it reaches auction can help you resolve your mortgage debt while protecting your credit. If the sale covers your remaining loan balance, you’ll avoid foreclosure entirely. Even if the sale doesn’t fully cover what you owe, you may be able to negotiate with your lender to settle the remaining balance.
For example, if you owe $100,000 on your mortgage but sell your home for $90,000, you’d need to pay the remaining $10,000 to satisfy the loan. However, in some cases, lenders may agree to forgive the shortfall as part of a deed in lieu of foreclosure agreement.
At Telegraph Hill Realty Holdings LLC, we specialize in helping homeowners who are struggling with mortgage payments. We buy houses in Boston, Cape Cod, or Plymouth for cash, regardless of their condition, giving you a fast and hassle-free way to avoid giving your house back to the bank.
Why Selling Your Home is a Better Option
Some homeowners hesitate to sell because they feel like they’re losing their home either way. However, the financial impact of a foreclosure is far worse than selling your house to pay off your mortgage. A foreclosure can lower your credit score by 100 to 150 points or more, making it difficult to qualify for future loans, rent a home, or even secure employment in some industries.
Selling your home before foreclosure allows you to move forward without the long-term financial burden of giving your house back to the bank in Boston, Cape Cod, or Plymouth.
If you’re facing foreclosure and want to explore your options, contact Telegraph Hill Realty Holdings LLC today at 617-812-7837. We offer fast, fair cash offers, so you can take control of your financial future before it’s too late.