We usually like to save this part for last. But, it seems that most homeowners don’t reach or read to this part, but you can sell your house to “help with avoiding foreclosure.” If your home is worth more than you owe, you can sell to an investor such as We Buy Houses Cash Dallas. You could put it on the market,if there is enough time before the auction sale.
So, there’s a good chance if you’re reading this article, you are in foreclosure now, or about to be in foreclosure in Texas. We know that foreclosure can be a scary and confusing when you don’t know all of your options. You’re not alone. There are literally millions of homeowners across America going through foreclosure this year and many do find a way to keep their homes. So, it doesn’t matter if you’re facing foreclosure in Texas or elsewhere in the country, because you can’t keep up with mortgage payments. Or maybe you are facing an HOA or tax lien foreclosures, we’ve got some answers for you here!
Let’s have a look at the different ways we can help with avoiding foreclosure in Texas! Then we will look at what doesn’t work. With our help at We Buy Houses Cash Dallas, you can get be back on your feet.
Honestly, Filing Bankruptcy May Not Help
It has been said that filing bankruptcy will help with avoiding foreclosure, it’s myth that homeowners hold on to. But, you need to know that filing bankruptcy is only a short-term solution to avoiding your lender’s foreclosure process.
In the State of Texas, most lenders need to ask the Trustee and or replace the Trustee, in order to file bankruptcy and the court judge must approve the filing in order to move forward. One thing most all homeowners miss, is that you cannot mis one mortgage payment or other requirements from the bankrutcy court. Missing one requirement can place your property right back in foreclosure. When you miss one requirement, yuor creditor will take your home by repossessing it even after you file for bankruptcy protection.
Pay Off The Full Amount Due
To this point, you’ve missed multiple payments but need help with avoiding foreclosure. By making a few payments, it doesn’t help. Did you write a promissory note? That won’t help either! You must pay off the entire outstanding balance with your lender to keep your home.
You need to “reinstate” the loan and that will costs thousands of dollars, or your lender has the right to commence foreclosure proceedings. A partial payment will simply allow your lender to credit your account what you paid as an initial deposit. Things can and will get tricky.
Texas Law & Homestead
In Texas the homestead law may protect you from foreclosure and a homestead may or may not help you from becoming homeless. No, if a contractor does any remodling work and then places a lien on your home, the homestead expemtion may or may not protect you in Texas. The Texas homestead may also protect you or help with avoiding foreclosure in an HOA, some cases.
With that, homeowners need to know, a homestead exemption cannot prevent a foreclosure if you have a pre-existing mortgage or a tax lien.
Avoiding Foreclosure in Texas
Now it’s time to look at the different options that can help you when you are facing foreclosure on your home in Texas.
All homeowners need to be aware of the predators out there. When you become desperate to save your home, the predators show up offering services that are questionable.
Predatory companies will show and explain programs to you that may sound good in theory, but they can also harm you as a homeowner. Because these types of companies make a living on theft and lies, they do sound very convincing to desperate sellers. They capitalize on the seller’s urgency and take away potential profits that would otherwise go directly into the homeowner’s pocket. There are many similar services, so it is essential to research before making any decisions! When calling for help with avoiding foreclosure, homeowners need to always do their reseach on all companies.
If you go through an attorney, the attorney can help with the sale and can help ensure you’re getting a fair price. Your attorney represents your rights during the transaction so that you make a reasonable amount of money for your home.
Short Sale
A short sale is when the current market value of your home is lower or significantly lower than how much you owe on it. A short sale may be a good option. Most loans allow for this type of loss mitigation to help with avoiding foreclosure.
When you perform a short sale on your home to save itfrom foreclosure, you are agreing to sell your home for less than what is owed on the loan. Though your lender will need to forgive the outstanding debt and aprove the short sale amount. They will then allow a buyer to take over the property.
As a homeowner, you will need to consult a professional. Either a company who is wanting to buy the property such as We Buy Houses Cash Dallas, or contact a real estate attorney if you choose this option!
Some Loans May Help
If the homeowner has significant equity in the home, your lender may be willing to refinance the home. Lenders will provide a Home Equity Loan when the property s primary residence. Your lender may also offer you a home equity line of credit that you can use to pay off your mortgage company.
Should refinance your home in order to help with avoiding foreclosure, you repay your loan and essentially start over. There are many lenders out there that will help you with this type of laon, as long as you have a large enough equity.
This One is Tricky ‘The Forbearance‘
Only after you receive your Notice of Default or delinquency from your lender. You need to contact your lender as soon as possible and find out what different programs they may offer to help with avoiding foreclosure. One thing most homeowners never know about is, lenders lose money during a foreclosure process as well. So you need to understand that the lender is motivated to work with you under some circumstances.
Being a homeowner in Texas, the forebearance maybe a good option for delaying foreclosure. Because this agreement will help you and you lender both.
The hard part is, you must be able to demonstrate to your lender that you can make mortgage payments on time in the next few months, while many lenders may be willing to postpone foreclosure proceedings. Should get caught up in foreclosure again soon, you ‘re out!
Loan Modification
When homeowners negotiate with their lender to change the loan terms to help make it more affordable and help with avoiding foreclosure. You do want to be sure, that modification does include not only changing the interest rate, butreduces the interest rate and that it extends repayment deadline.
Yo must be very careful. If you are already in the middle of applying for, or making changes and modifiying your loan, your lender can still push forward with foreclosure proceedings.
To keep the modification at minimum and your risk of facing foreclosure at minimum, completeng and submitt your loan modification application at least fourty five days prior to any potential foreclosure sale date.
Don’t wait until the last minute; act proactively to protect yourself! Contact We Buy Houses Cash Dallas, if you are uncertain about any modifications, or simply want to sell your house fast.
The Deed in Lieu of Foreclosure Program
The deed in lieu program is essentially a cash for keys program, and will help with avoiding foreclosure sale! Many times this program works out well for the homeowner. But, if the bank agrees to buy your home in exchange for money and releases you from your mortgage obligation, that can be a good program for the homeowner.
So, Texas homeowners need to ask thier lenders about the program. The fianle is when you agree on a date to move out. Your lender will give you an agreed-upon amount of cash, contingent on the date you move. If you are working with a real estate foreclosure attorney to get the best deal you can, the attorney may also be able to help you get more cash for your keys!
Lease Out Your Home
Leasing out your home may sound a bit off, but it works and despite your inability to make the mortgage payment, this is a good option. There are out there who want to rent houses and they can make the rent payment, which in turn pays the mortgage. With the many well-qualified renters with fair to good credit who cannot purchase a home due to the large down payment, they can still make the rent, and help with avoiding foreclosure.
Concider this, you’re going into foreclosure, renting your home out for a year may offer you more time and flexibility. Many timies, you can rent out your huose for more than the monthly mortgage payment itself. That extra monthly income can go towards paying off other debt. In the mean time, you are creating more equity in the home.
You can hire a realtor to help you screen tenants. Don’t allow yourself to be convinced about a future tenant due to their their personality. Do the background check and call their references!!
Texas Foreclosure
When you get a foreclosure notice in the mail, it’s only because you failed to pay your mortgage. You know it, your lender knows it. The foreclosure process in Texas can last for three to nine months, or maybe your HOA is trying to foreclose on you.
Prior to the actual foreclosure, you will have received two certified mail notices. First is a “Notice of Default and Intent to Accelerate”. Esentially this notice allows you to pay what you owe in the next twenty-one days, and or before receieving the next notice.
Now the second notice is which is called the “Notice of Acceleration and Posting for Foreclosure” and must state the location of the sale and a three-hour period during which the sale will take place. The 2nd notice will also be filed with the county clerk office and physically posted at the courthouse.
Mnay lenders will post a public notice of default on your front door or next to it, to make you aware that you are at risk of losing your property in 30 to 120 days.
Foreclosure Auction
Once you receive the 2nd notice, you will then receive the scheduled date and time of the foreclosure sale. Your lender just made you aware that your home is scheduled for sale at the next monthly foreclosure auction, which is in Texas is on the first Tuesday of each month.
This second notice could give you another month to prepare or the auction could be only a few days away. It is time to take action if you havenh’t yet. You are about to lose your home. Need help with avoiding foreclosure? Contact an attorney and they can explain the whole process in a free consutlation.
Foreclosure and Texas
When it comes to foreclosure in Texas, most people never know it, but Texas is a Non-Judicial Foreclosure State. Texas does not necessarily require the lender or HOA to go through court proceedings. This is called Non-Judicial Foreclosure.
Non-judicial foreclosure can happen without a court order if the mortgage documents contain a power of sale clause (which most do). You have minimal time in Texas to assert your rights or lose your home.
Texas, foreclosure and eviction are two different and distinct proceedings. Even if your home is foreclosed on, you can stay in it until the eviction process is finalized. After all is said and done, a hearing will be scheduled for you to leave the property when necessary.
There are serious consequences for non-payment of mortgage. When you fail to pay in full, your lender can and may choose to evict you from your home and auction off the property. Your lender may also offer a cash for keys option, allowing your lender to buy back their property at an agreed price. Otherwise, it’ll be sold at auction with the highest bidder winning ownership rights over it.
Take control by finding ways to stall and ultimately prevent foreclosure. Don’t miss out on any potential opportunities – now is the time to safeguard your home before your chance slips away! Get help with avoiding foreclosure, now!
By hiring ring in an experienced real estate lawyer you can stay on top of your entitlements and have a legal representative in court!
The Foreclosure Tax Lien
When you fail to meet your obligation paying your property taxex in Texas, it is within the State government’s right to repossess your land and send you multiple letters and bills demanding payment for the outstanding taxes. You need help with avoiding foreclosure, now!
Again, when you fail to pay your taxes on time, the State and local tax collector will deem them delinquent. Based on where you reside, penalties and other fees will accumulate and become severe if not addressed promptly.
Most delinquncies have incur up to 38% of your tax bill in property tax penalties, interest, and collection fees in just 5 months of nonpayment. Then you have penalties that do include collection and attorney fees that can be as high as 20% of your total property tax bill at the time of collection. Then, on top of all those penelties and fees, you will owe 1% as a monthly penalty in interest (or 12% per year) for as long as your bill is unpaid. You need help with avoiding foreclosure, now!
Not only do the steep penalties and interest continue to increase, but they also make the entire bill much higher. You can mitigate the damage of delinquent property taxes with help. An experienced real estate attorney may be able to help with avoiding a foreclosure, while using one of the following strategies: Remamber, We Buy Houses Cash Dallas, can also help.
- It’s time to set up a repayment plan with the tax office. Payment plans can help you get on top of the accruing penalties based on their interest rates and give you a viable option to remain a homeowner! And with a payment plan, you may not need to pay additional interest.
- You need to apply for an exemption if certain factors apply to your situation. If you are over 65 or disabled, you may have a legal right to an automatic stay in your case.
- Need help negotiating a settlement with the tax office so you can pay property taxes
- Look into the property tax deferral if you are facing financial hardship. If your income is below a certain amount, you may get a break on your past-due taxes for some time.
- As a last resort, file for bankruptcy to stop the tax foreclosure process. However, know that bankruptcy can tank your credit score and remain on your credit report for seven years!
When you don’t know which way to turn to, you need help with avoiding foreclosure, in Texas we can help you not only avoid the foreclosure process by buying your house, we can clear off all taxes due.Contact us today We Buy Houses Cash Dallas.
Time to Get Help
Big banks have their big legal teams, but don’t be fooled into thinking they can beat you out of your home. We Buy Houses Cash Dallas, can help uncomplicate the language banks use to make you feel intimidated and submit to foreclosure. There is help with avoiding foreclosure out there, and we are one to help. Contact us today at (214) 723-1304.
