Although real estate investors are generally optimistic, it’s not realistic to believe that every real estate transaction will be successful. Successful investors understand and embrace this fact by implementing systems that allow them to cut and recoup their losses in the shortest amount of time possible. Having an understanding of the Texas foreclosure process is imperative in avoiding unnecessary loss of time and capital . If you are a private money lender or investor that facilitates owner financing transactions, it can mean the difference between a winning and a losing investment. Even worse, if the Texas foreclosure process is not respected, it can lead to the loss of the entire investment through a lawsuit.
Is the bank required to help me?
Just like you may be looking for options to stop the foreclosure, they are looking at all their options to minimize their loss. Do not count on the bank to help you, they are not on your side. If it is more beneficial to collect on the mortgage insurance, sell or transfer the property, or foreclose on the property that is what the bank will do. They have attorneys on their side to help foreclose on you, who is on your side to help stop the foreclosure?
I’m delinquent on my mortgage, what options do I have?
A homeowner has many options to stop a foreclosure. This includes a forbearance agreement, a deed-in-lieu of foreclosure, a loan modification, a short sale, a temporary restraining order, an injunction, Ch. 7 & 13 Bankruptcy, and litigation. The important thing to understand is that the banks are not on your side and are not required to offer or approve any of these options. Make sure you find an attorney that will help find the best option for you. The longer you wait to get assistance the less options you have to stop a foreclosure. You must act now.
Are banks denying your short sale or loan modification?
The banks have a process of how they approach accepting these loss mitigation alternatives. If you are just submitting paperwork that they are asking for without presenting it in a manner that is beneficial for the banks, you may be hurting your chances of approval. The average approval rate for acceptance is only 25% with no representation. Having a competent attorney to assist you through the process will increase your chances tremendously because they know what the banks are looking for and the banks want to make sure they are following all the guidelines properly so they don’t find themselves in a lawsuit.
Can the HOA foreclose on my home?
Yes. The HOA can certainly foreclose on your property and will if you continue to fail to pay your dues. The good news is that the laws for HOA in Texas have changed and are now more favorable for the homeowner. Find out what the HOAs don’t want you to know. Get in contact with our office today to prevent the HOA from coming down on you.
Why is the bank no longer accepting my payments?
In closings of homes, there is documentation that is sign that includes acceleration clauses. An acceleration clause will make your loan due in full at the time your note is accelerated. This is a legal tool that the banks have the right to exercise. If they have accelerated your note they will not take any payments from you and you are jeopardy of getting foreclosed very soon. You need to contact our office immediately.
What is a 21-day notice?
Texas Law mandates that you can only foreclose on the first Tuesday of every month. The 21-day notice is the document that the trustee (the individual who foreclosures on your home) is required by law to send out to you to notify you of your foreclosure sale date. The document should be sent out 21 days before the foreclosure sale date. The document should tell you where the foreclosure is to occur, what time it is to occur, and who will be foreclosing the property.
Is there anything I can do to get my foreclosed home back?
Yes. We have had several cases where we were able to rescind the foreclosure of a home. The foreclosure process in Texas is very defined. Not complying with the statutory procedures mandated by Texas law can force a bank to rescind a foreclosure. We offer loan reviews to determine whether or not the bank was compliant. If we can find a violation of the process we can help get your foreclosure rescinded.
Can Bankruptcy stop a foreclosure?
Yes. A bankruptcy is the only legal option that can guarantee stopping a foreclosure. The moment you file a bankruptcy you will get an automatic stay. The automatic stay will prevent any creditor from preforming any collection practices including foreclosure. Consult a competent real estate attorney to see if bankruptcy is the best option for you.
How does a foreclosure affect me?
Foreclosure is the absolute worst thing that you can allow to happen. A foreclosure can affect your credit for many years, increase your tax liability, eliminate your purchasing power, prevent you from getting a job, and you still may be liable for the unpaid balance. The Mortgage Forgiveness Debt Relief Act was a law that would protect deficiencies from being considered as income. Unfortunately it was not extended in 2014. This can have some serious effects on how that debt is handled. Do not allow a foreclosure to occur as it will just be the beginning of your problems.