In order to fight a foreclosure, you need to find valid reasons that justify the delay of repossession. Make the best use of your resources and strategies outlined here to stop foreclosure on your home. We’ll guide you about the next steps and options available to you right now.
How Does the Foreclosure Process Work in Texas?
What are the steps in foreclosure processing? Texas is a trustee state, which means that in the case of failure to make your loan payments, your home can be sold at the lender’s request without any court intervention. It’s also known as non-judicial foreclosure. Without court
involvement, non-judicial foreclosure doesn’t take months. However, laws are here to protect you.
3-Step Foreclosure Process in Houston, Texas
A lender cannot begin the foreclosure process unless you are 120 days late with the payment. If you’re facing financial difficulties, it’s best to act within those 4 months and seek a foreclosure prevention strategy.
Notice of Default: After 120 days (sometimes after 90 days), the lender can serve you a notice of default. As per the law, the servicer must give you 20-30 days to cure. You can bring your loan current by paying any pending amount. That’s also called reinstating the loan. You will
have to pay any late-payment penalty, but you can stop foreclosure at this stage.
I know it’s challenging to bring your loan current because of financial issues. However, think hard and try if you can reinstate your mortgage. Most households can benefit from a second income (even if it’s a small side project). Selling a luxury item can help, and there are loans to
help save your home. Talk to your lender about a different payment plan or ask to suspend your payments for a certain period. You can also apply for assistance through 995hope.org.
You’ll also need to request a loss mitigation application packet. The packet will highlight ways to stop foreclosure in your particular situation, and your lender should provide you this document. If you submit your complete application 37 days before the sale, you can delay the foreclosure process. However, you must confirm that the lender has received your application 37 days earlier from the sale.
Notice of Sale: A notice of sale is served 21 days before the sale. That’s the final sale. Until this step, you have options available. You can use a different payment plan. You can try to reinstate your mortgage. You can apply for loan forbearance. However, your options are limited
once the sale is scheduled.
Foreclosure Sale: If you can’t stop foreclosure, the lender can continue with his process. In TX, foreclosure sales are held on the first Tuesday of the week where the house is sold to the highest bidder. In this particular scenario, you don’t get the right to redeem your property. You can’t repurchase your home unless it is sold by a government entity, a tax lender, or HOA.
Can You Stop Foreclosure Once It Starts?
Yes, you can stop foreclosure even if the lender has begun the process. It’s best to act earlier because timing is important. You need to negotiate terms with your lender so you can come up with a different plan. Even if you’re planning to sell the property, you’ll need time to find a buyer. Most people consider bankruptcy the final way to stop foreclosure, but you need to know a few things.
First of all, you can’t file for bankruptcy unless you have attended mandatory credit counseling in the last six months. The counseling is designed to help you with financial obstacles. However, if the consultation is not helpful, you can continue filing the bankruptcy.
Furthermore, bankruptcy chapter 7 and chapter 13 are two available options. Chapter 7 is a liquidation bankruptcy. If you choose this option, you can’t save your home. However, chapter 13 can be used to restructure your payments. You can propose a payment plan to pay back your pending mortgage. And you can keep your home. The HOPE program is also designed to help homeowners like you. If you’re facing foreclosure, it’s best to call the free helpline and see what assistance they can offer you.
Before you receive the notice of sale, you can take a low interest-rate loan to pay back your due balance. Contact our team to see what other options are available to you right now.
Do you get any money if your house is foreclosed?
As the homeowner, you’re likely concerned about the outcome. We’re here to help you achieve your goals. Even in a non-judicial foreclosure, you’re entitled to the leftover money. However, you’ll have to pay the fees for foreclosure and any interest rate on the pending amount.
You can take help from a real estate foreclosure expert in Houston at a stressful time like this. Someone who has walked in your shoes and who can help stop foreclosure. We at Big Tex Home Buyers work with homeowners like you, and we can help you make sense of this confusion. Since we work with people in foreclosure, we know how the local law works here. Our team can help you negotiate terms with the lender to feel some peace at this stage. It’s a stressful situation; we know that. But we can work one-on-one to find a solution that works.
We also buy houses in Houston, Texas. If your home has become more of a financial burden and you’re ready to give up, we can pay you a fair cash price for your home. Even if the foreclosure is final, we can still buy the property, pay you cash and give you peace of mind. That’ll stop foreclosure in its tracks, and we can discuss together a way to handle the situation. Contact us to stop property foreclosure on your home in Houston, TX.