How To Stop Foreclosure In San Antonio, Bexar County Texas
How To Stop Foreclosure in San Antonio can be a scary and very much an unplanned process in a person’s or family’s life. When faced with a bank or property tax foreclosure, most people next wonder how to avoid foreclosure immediately in Bexar county. In order to learn how to stop foreclosure at the last minute, even after it has started, you must first learn about the types of foreclosure and the foreclosure process that is used in Bexar county. We cover everything you need to know about ways to stop foreclosure in Bexar county Texas.
As we buy houses in San Antonio, we frequently come across situations where homeowners are uninformed or misinformed regarding their foreclosure. Our goal is to help homeowners have a better understanding of what happens during a foreclosure so that they can take the appropriate course of action for their unique situation.
June 24th, 2021 Foreclosure Update
As of June 24th along with some June 29th updates, the Biden administration has extended the moratorium on federally backed loans by USDA, FHA, VA, Fannie Mae, and Freddy Mac through July 31st, 2021. If you have not been making mortgage payments, you have extra time to take the next steps to prevent foreclosure. Keep reading to understand all of your options.
How A Foreclosure Impacts Homeowners In Texas
Texas residents who may be facing foreclosure need to understand the impact of a foreclosure. The effects of having a foreclosure are immediate as well as long-term. Foreclosure can follow you for years and can put you in situations that are difficult to overcome. There are emotional effects as well as financial and it can even impact where you are able to live in the future. Some of the common effects of foreclosure are:
|Lose Home/ Evicted||Emotional Effects|
|Where You Live||Ability To Get New Loans|
|Future Job Opportunities||Possible Tax Implications|
|Damage To Your Credit||Ability To Rent|
Who Can Foreclose On Your House?
One is from the mortgage holder of a property. This is the entity or person who has lent money to purchase a property. In most cases, this is the bank.
The other is from the Bexar County sheriff in the form of a delinquent property tax foreclosure.
What Happens When The Bank Is Foreclosing On Your Home
If you haven’t been making your mortgage payments, the bank will eventually take steps to start the foreclosure process. Often, for this to have happened, you have fallen behind for several months. By this time, the bank has likely been calling, and now they are telling you that they are going to foreclose on your house. They will also have likely sent you letters explaining that they are going to begin the foreclosure process. Each bank and mortgage servicer are different and each one handles the lead-up to foreclosure differently.
No matter what the bank or servicer tells you, the foreclosure has not begun until they have filed a notice with the county clerk and posted publicly 21 calendar days prior to the intended foreclosure date. This is called a “Notice of Trustee Sale” or “Notice of Substitute Trustee Sale”. According to the Texas Property Code, notice must also be given to the borrower (most often the borrower is the homeowner).
They must first send you a document by certified mail. This document is titled “Notice of Default and Intent to Accelerate”. This document allows the borrower a period 20 days to fix the problem of late payments by coming to an agreed-upon solution with the bank. The solution is most commonly making up the late payments and fees in full or what is called a loan modification. However, if no solution or cure has happened within the 20 days, the bank will take the next step.
Now, the bank must send another certified letter titled “Notice of Default and Intent to Accelerate”. This letter must be sent 21 days prior to the actual foreclosure date. This letter must also include information such as the location of the foreclosure auction as well as the three-hour time period in which the sale will occur.
Here is a note for homeowners in this situation. Mail is required to be sent to the last known address. If you have moved or are receiving mail at a different location, you must notify the bank of your new address or you might not receive these letters that will tell you the actual timeline of your foreclosure. Texas has a mailbox rule that says if it is put in the mail, it is presumed to be delivered. We have spoken to many people over the years who say they never got the letters and notices sent from the bank in the mail. Unfortunately in Texas, this isn’t an acceptable reason for not knowing about foreclosure and will not help prevent a foreclosure.
Phone conversations with banks are not binding. Imagine you are discussing loan modification and a lender representative tells you they are holding off on foreclosure. That statement isn’t binding and simply isn’t true. Unless you have a signed document called a standstill or forbearance agreement, the foreclosure process has not been stopped or paused. Without signed documentation, phone calls or conversations with bank representatives mean nothing. The bank is proceeding with the foreclosure while they are having these conversations with you. Please keep in mind the timeline according to the notices you have received.
Options For Texas Homeowners Facing Bank Foreclosure
If you are facing foreclosure, there are still many options for homeowners to stop or prevent the foreclosure from taking place. We are going to cover each option so that you can determine if one of these options may be right for you.
1. Loan Modification – A loan modification is a way to stop a foreclosure that includes altering the terms of your original mortgage. Generally, most of the fees and interest, and back payments that have accrued will be added to the back of the loan. This is typically done by extending the term of repayment or lowering the interest rate to get the payments lowered. This option should be explored early on in the process.
2. Short Sale – A short sale is a specific type of sale in which the bank will allow the homeowner to sell the house for less than the actual amount owed. This typically happens when the homeowner owes more than the house is actually worth. The downside for the homeowner is that their credit will likely still be damaged (although not as bad a foreclosure), and the seller could have tax liabilities on the difference between what is owed to the bank versus what the house actually sells for.
3. Bankruptcy – Filing for bankruptcy to delay foreclosure can be an option. Basically, you hire an attorney and let them know about the upcoming foreclosure that needs to be stopped as a part of the bankruptcy process. While this is an option for some homeowners, it does require that you are able to pay the fees of the bankruptcy attorney. More information about bankruptcy can be found here.
4. Temporary Restraining Order – A temporary restraining order is a lawsuit that is filed in order to stop foreclosure. This is one of the least common ways to stop foreclosure mainly because people aren’t aware of this option. Using a Temporary Restraining Order to stop a foreclosure in Texas is most often done when the homeowner is selling their house to an investor. If this is the route you choose, make sure the investor has good we buy houses San Antonio reviews so that you know you are dealing with an experienced investor.
5. Sell With A Realtor – Listing your house for sale with a Realtor prior to losing the house to foreclosure is an option for homeowners. If a homeowner isn’t facing an upcoming foreclosure in the next month, this option can be a good one. Typically, selling with a Realtor requires some time to get the house on the market, have qualified buyers to come and see the house, negotiate a deal, and finalize the transaction.
6. Deed In Lieu Of Foreclosure – As an absolute last resort, homeowners can try and work with the bank to give them a deed in lieu of foreclosure. This is when a homeowner voluntarily gives the house back to the bank so that the bank doesn’t have to go through the costly foreclosure process. This option isn’t as good as the other options available.
Homeowners facing foreclosure in Texas do have options to save their houses from foreclosure. Commonly, people will contact us saying “I need to sell my house fast San Antonio TX” Each situation is different and each homeowner must choose how they handle their unique situation in a way that is most beneficial for them. Stopping Foreclosure in Texas is challenging but possible. All hope is not lost. Oftentimes, the difficulty for homeowners is getting the ball rolling no matter which method of stopping foreclosure they choose.
How Can You Stop A Back Taxes Auction In Bexar County?
Stop your house from being sold for back taxes by using the following methods:
Pay Off The Back Taxes – this is the easiest way to stop the foreclosure but probably the hardest way to actually make happen because you have to come up with all of the money.
Property Tax Loan –These are short-term loans designed to pay your back taxes. They can be a great tool if you are experiencing temporary financial hardship and will be back on your feet soon or you just need to buy yourself a little extra time. However, a word of caution. Even though these lenders must be licensed by the state of Texas, (https://occc.texas.gov/industry/property-tax-lenders) not all of them have your best interests at heart. Some lenders have earned the reputation of foreclosing quickly if the specific terms of the loan aren’t met. They see more value in foreclosing on the property and owning the property than if you were to simply pay the loan back. As with anything, choose who you work with carefully and make sure they have a stellar reputation.
Selling Your House To An Investor – This can be a great option because a reputable investor will give you a fair cash price for your house and can close quickly before the foreclosure auction. When selling your house to a local investor, you want to make sure you find the right company to deal with. A company that buys houses should have a lot of positive reviews and even video testimonials like the ones seen here. Make sure and work with professionals who know your situation and have been there before.
If you would like an honest assessment of your options at no cost or obligation, fill out your information below and we will be in touch. No pressure, no stress