Facing Foreclosure on Your Houston Home – Have you found yourself facing foreclosure on your Houston home? If so, we understand why you might feel that all hope is lost and fear that you are out of options. You are not out of options until your home has been completely lost. Depending on where you are in the foreclosure process there are some resources available to assist you and avoid foreclosure. Even if you cannot keep your home it is important to avoid foreclosure of your Houston home at all costs. Foreclosure will be a big hit to your credit score and will make attaining financing for future homes very difficult. Have you found yourself amid a divorce or suddenly lost your main source of income? It is not a given that you have to lose your home due to an unforeseen financial situation. When your circumstances change dramatically one of the first things you should do is reach out to your lender and see if there are any ways they can work with you to avoid foreclosure. Even if the lender refuses to work with you, you still have options. Here are some of your options:
- It is not an easy call to make but it is in your best interests to pick up the phone and speak with your lender about your current financial challenges. Contrary to popular belief the bank does not want to own your home therefore it is in their best interests to work with you on ways to keep you in your Houston home. There is some leeway on the bank’s part to modify the terms of the repayment agreement. They may be willing to give you a little time before beginning the official foreclosure process. In this instance it is imperative that you speak with them as soon as possible, before you even miss your first payment is the ideal time to work out a forbearance agreement.
- Note Modification. As long as you have the ability to still pay something the lender will frequently work with you to keep you in the home and up to date on payments. Some of the possibilities available to them include note modification. When your note is modified it means that they may be able to extend the length of the note, subsequently lowering your payment to something that you can afford. Another way they be able to assist you is by freezing your interest rate, depending on the type of mortgage you have. In order to secure a note modification a review and approval of your credit score may be required. That is why it is imperative to speak to the bank before you hit rock bottom, financially.
- Sell Your Home. When the bank is unwilling to work with you one of the best options you have available to you is to sell your Houston home. In this instance selling your Houston home fast may be able to resolve your financial issues prior to actual foreclosure. If your home gets foreclosed it will stay on your credit score for 7 years, so you really want to avoid foreclosure for the sake of your financial wellness. You may be able to sell your home to a real estate investor for cash, but much like the above mentioned options you have to move fast. The sooner you sell your home, ideally before your first missed payment, the better chances you have of avoiding the beginning of the foreclosure process.
Once the foreclosure process has begun on your Houston home the more limited your options become. Texas foreclosures take on average about 60 days, if you just walk away from the home uncontested. You could contest it in court, but this is going to cost you some cash, and it is not guaranteed to buy you much time. And remember once the foreclosure has begun the bank has to approve any action you might take to avoid traditional foreclosure and this will still affect your credit score. It is imperative that you consider your options and be ready to act in your own best interests prior to missing your first payment or very shortly thereafter.