Banks want you to know that foreclosures are your fault.
There’s a weird balancing act that people have to do when they’re trying to buy a home. You do credit checks, show proof of funds, and provide bank statements again and again. Everything is done in a specific timeline that by the end of it – if everything goes well – will result in you being able to sign over your life to your bank and get a house.
Banks want you to feel like you’re in a partnership with them. They’re there to help you; unless you don’t meet their qualifications. They are happily invested in helping you get as much money as you can for the house of your dreams; unless you do one thing or two wrong in their timeline and in your own bank account.
In my opinion, it’s all a mess. And the list of what you need to do in all your free time goes on and on.
But that's why I created SubTo, so you could stay ahead of the banks.
Now, I understand banks wanting to protect their assets and liabilities. They, like most of us, don’t want to give money away to people that they’ll never get back or that they’ll lose out on altogether.
But if you’re currently fearing pre-foreclosure because of unfortunate circumstances, the bank will point fingers at you. It doesn’t matter if you’re facing divorce, are in between jobs, had a family emergency that wiped your bank account or if were struggling to make ends meet anyway. It’s always your, and never their, fault.
So, even if you’re only getting this info to help prepare yourself because everyone’s talking about an economic crash, what are you supposed to do in a bad situation?
[h2] Subject to can save your credit in pre-foreclosure
Subject to is a way that I as a real estate investor help individuals and the community. In a subject to contract, I leave a home in the name of the original buyer, but make payments to the bank in their name. I do this with the homeowner’s understanding that the property is now mine, but I catch them up on their payments, put some money in their pocket and give them time to find somewhere else to live.
This lets them walk away from a property in a timeline that works for them, but saves their credit so they can keep on living.
The problem with walking away from your home in foreclosure is not just that you lose your home, but that it follows you for years. Seven years, to be exact.
That means that you’re out of your luck and any time you try to apply for a job, a credit card, buy a card, get an apartment or just pay bills in general, for seven years you have a rain cloud that tells everyone around your that you were in a bad place.
Think about the kind of person you were seven years ago. I know a lot has changed for me, and I can't imagine the mistakes I made back then still haunting me now even though I am not the same person.
So, instead of going into default and letting a bank reclaim your property that they’re just going the auction off anyway, consider selling to someone who can give you time, money and a better future.
That’s what I teach the SubTo community to do, and that’s why creative financing can change your life whether you’re a part of this community or not.