Millions of Americans find themselves facing foreclosure each year. Texans are no exception to this hardship. It becomes more difficult for people to make their monthly mortgage payment as finances become more desperate. Payments begin to fall behind, and once you miss a payment, it can be nearly impossible to catch up.
Request a Loan Modification
As soon as you realize you can’t meet your loan obligation, call the lender and request a loan modification. This is a plan you arrange with the lender, so you can stay in your home.
In the state of Texas, the lender can begin foreclosure proceedings once you are 120 days delinquent on your loan. Foreclosure is tough to live down, because it stays on your credit report for seven years. Some people avoid foreclosure by filing for bankruptcy. This can sometimes be a viable option, but it’s a lengthy, stressful court process and stays on your credit report for 10 years. Either option is going to hit your credit score hard for many years, so it’s always best to avoid bankruptcy and foreclosure.
Understand the Process in Texas
To avoid foreclosure, it’s important to first understand what the process looks like in Texas.
Most foreclosures in Texas are what’s called “nonjudicial.” This means the lender can foreclose and sell the house without ever going to court by following this process:
- Notice of default. The lender must issue a notice of default and intent to accelerate, which gives the borrower 20 days to correct the default status of the loan.
- Notice of sale. Once 20 days have passed, the lender can issue a notice of sale. This notice must be served at least 21 days prior to the scheduled foreclosure sale date. The notice will be sent via certified mail, posted on the courthouse door, and filed with the county clerk.
- The sale will take place at the county courthouse on the first Tuesday of the month.
Texas does not have a right of redemption for foreclosed property.
Find Light at the End of the Tunnel
The good news: You may be able to avoid foreclosure if you act quickly. Many people can stop the foreclosure process by finding a buyer for their home who will give them cash for the sale. Even if your lender has already started the process of foreclosure, you still have the option to find a cash buyer for the property.
Work with Your Lender
Before issuing the notice of sale, the lender will usually consider selling if the borrower can arrange an offer, which is a far better option for the lender than taking their chances at auction. It saves them the time and trouble of having to locate a buyer for the property themselves. Plus, if you can sell the property for more than you owe the lender, you get to keep the profit. That’s money that you can use to get into a new home or pay off other debt.
Time is of the essence if you have already received a notice of default. My Fast Home Buyers can give you cash offer fast and help you get back on your feet. Fill out our online form now to get a no-obligation response within 24 hours.