Although real estate investors are typically optimistic, it is not realistic to believe that every single real estate transaction will be successful. Competent successful investors embrace and understand this fact by implementing systems that allow them to cut and recoup their losses in the shortest amount of time possible. Understanding the Texas foreclosure process is imperative in steering clear of unnecessary loss of time and capital . If you are an investor or private money lender 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 and followed, it can lead to the loss of the entire investment in the form of a lawsuit.
Is the bank required to help me?
The banks are looking at all their options to minimize loss the same way you are looking for options to stop the foreclosure. Don’t rely on the bank to help you, they are not on your side. If it is more beneficial to sell or transfer the property, foreclose on the property, or collect on the mortgage insurance that is what the bank will do. They have lawyers that have their best interest 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 does have options to stop a foreclosure. This includes a short sale, forbearance agreement, a deed-in-lieu of foreclosure, a loan modification, Ch. 7 & 13 bankruptcy, an injunction, a temporary restraining order, and litigation. The important thing to understand is that the banks are looking out for their interest only and are not required to approve or even offer any of these options. You do have options, make sure you find an attorney that will help find the best one for you. The longer you delay to get assistance the less options you have to stop a foreclosure. You need to act sooner than later.
Are banks denying your short sale or loan modification?
The banks have a system in process of how they approach accepting these loss mitigation alternatives. If you are simply submitting paperwork that they are requesting without presenting it in a manner that is beneficial for the banks, you may be hurting your possibilities of approval. With no representation, the average approval rate for acceptance is only 25%. Having a capable attorney guide you through the process will increase your possibilities tremendously because they comprehend what the banks are looking for and the banks want to make certain they are following all the guidelines properly so they don’t find themselves in a lawsuit.
Can the HOA foreclose on my home?
Absolutely. If you fail to pay your dues, the HOA can and will certainly foreclose on your property. The laws for HOA in Texas have changed and are now more favorable for the homeowner which is good news for you. Let us tell you what the HOAs don’t want you to know. Get in contact with our office today to prevent the HOA from foreclosing on your home.
Why is the bank no longer accepting my payments?
In home closings, there is documentation signed that includes acceleration clauses. An acceleration clause will demand your loan be due in full at the time your note is accelerated. The banks have the right to exercise this legal tool. Once your note has been accelerated, they will not take any payments from you and you are at risk of getting foreclosed very soon. You must contact our office immediately.
What is a 21-day notice?
Forecloses can only take place on the first Tuesday of every month and that is mandated by Texas Law. 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 mailed out 21 days before the foreclosure sale date. The document should tell you where the foreclosure is to occur, who will be foreclosing the property, and what time it is to occur.
Is there anything I can do to get my foreclosed home back?
Yes, we’ve had several cases where we were able to rescind the foreclosure of a property. 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 and audits to determine whether or not the bank was compliant. If we can find a violation of the process and procedures we can help get your foreclosure rescinded.
Can bankruptcy stop foreclosure?
Yes, a bankruptcy is the only legal option that is guaranteed to stop a foreclosure. The automatic stay is in place the moment a bankruptcy is filed. The automatic stay will stop any creditor from performing any collection practices including foreclosure. Consult one of our competent real estate attorneys to see if bankruptcy is the best option for you.
How does foreclosure affect me?
The absolute worst thing you can allow to happen is foreclosure. A foreclosure can affect your credit for many years, prevent you from getting a job, eliminate your purchasing power, increase your tax liability, and you still may be liable for the unpaid balance. The Mortgage Forgiveness Debt Relief Act was a law that would protect mortgage loan deficiencies from being considered as income. Unfortunately, it ended in 2014. This can have some major effects on how that debt is handled. Do not let your property get foreclosed, it will just be the beginning of your problems.