FORECLOSURE IN TEXAS
We can help owners in any stage of foreclosure, but the closer to the auction, the more limited our options will be. Our preference is to buy your house with cash and close as quickly as possible, long before the auction date. Our pre-foreclosure program can help you save your credit even if you owe what your house is worth (or more).
A property foreclosure is one of the most damaging events in a borrower’s credit history. The damage will affect credit worthiness for 7 to 10 years. In Texas, the foreclosure process is very fast. Depending on your lender, foreclosure proceedings may start as soon as 2 months after your first missed payment. The length of time from late payment to foreclosure varies widely from lender to lender.
Once you have missed payments, the lender will “accelerate” the loan, meaning that you have a certain amount of time to “cure” the loan by paying it off in full or reinstate the loan by paying your back payments and all of the penalties. The lender will send you a Notice of Default with details about these options. They’ll generally give you 30 days from the notice to cure the loan.
If you are facing foreclosure, don’t delay! We can help and there is NO cost to you.
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If you aren’t able to pay off the loan or make up the payments, a Notice of Foreclosure will be filed. The notice must be sent at least 21 days before the foreclosure auction. You remain the owner of the property until the auction date. Auctions are held on the first Tuesday of every month.
At the auction, members of the public have the opportunity to bid on the property. Very few people bid because bidders do not have an opportunity to see inside and they must have cash in hand. Most of the time, the property goes back to the lender, who will normally bid at least the loan amount.
Once the property goes to auction, the new owner will send an eviction notice if the former owner has not vacated the property. Some lenders will offer money to the former owner to leave the place clean and undamaged.
Steps in Texas foreclosure
- Missed payment
- Anytime after missed payments, acceleration, Notice of Default and demand letter to pay off the loan, also could offer to reinstate the loan
- At least 21 days before the auction date, Notice of Foreclosure
- Foreclosure auction on the county steps on 1st Tuesday of the month
- Eviction, anytime following auction date
Bankruptcy and foreclosure
A foreclosure may be delayed if the owner files bankruptcy. Bankruptcy affects your credit negatively for 7 to 10 years and will NOT help you avoid foreclosure if you cannot make the payments, only to delay it. If you think you can catch up your payments quickly, bankruptcy may allow you to do so. Consult an attorney to learn more about the bankruptcy process and risks involved.
We have a variety of options available to people facing foreclosure. We may be able to buy your home for cash or qualify you for a short sale. The most important step in preventing foreclosure is to contact someone as soon as you start missing payments, because the more time we have the easier it is for us to find a solution.
DO YOU OWE MORE THAN YOUR HOUSE IS WORTH?
Other real estate agents may make you feel hopeless if you owe what your house is worth, but we can help. As a seller, a short sale is very much like listing your home for sale. In a traditional sale, you owe the bank the loan balance. In a short sale, we negotiate with the bank to accept less than what’s owed as payment in full so you can sell your house without bringing cash to closing.
Short sales are a win-win solution for you and the bank. As a homeowner, you are able to sell the house and cover the closing costs without any money out of pocket. Since the bank is unlikely to get MORE than market value for your home after a foreclosure, they get to save the time and money involved in foreclosing on your home.
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*We are not attorneys and cannot give legal advice. Information has been researched but is not guaranteed.