Understand The Process And Your Options
Find out all you need to know about the foreclosure process in Texas so you can avoid foreclosure.
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.
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:
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 to fall 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.
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.
Selling to an investor is sometimes the best option used by homeowners facing foreclosure.
Often, homeowners facing foreclosure in Texas will exhaust other options and at the last minute, want companies that buy houses to come in and help them stop foreclosure. Luckily, an experienced we buy houses San Antonio company will have the knowledge required to help most homeowners prevent foreclosure. Make sure the company that buys houses has years of experience, good reviews, and is BBB accredited.
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.
Foreclosure for back taxes happens when taxes have not been paid for usually over two years. Bexar county uses Linebarger Goggan Blair & Sampson, LLP to begin the process of foreclosure. Property tax foreclosures have to be handled in similar ways to bank foreclosures. There must be plenty of notice, there will be several forms of public notice as well.
If nothing is done to stop the property tax foreclosure, the property will be sold to the highest bidder at the foreclosure auction handled by the county sheriff. Once this happens, the buyer of the property at auction is the new owner. They have all rights to the property including the right and the power to evict the people living in the property. Many times the owner of the property is an estate and no family member has taken charge of the property taxes.
Once the property is sold, all is not lost for the homeowner or even the heirs of the homeowner. In Texas, there is a right of redemption period. This means there is a period of time in which the homeowner can pay the past due taxes plus penalties and regain ownership of the home. If the property is the homeowner’s homestead, there is a two-year redemption period. If the property is not the homestead, then the redemption period is only 6 months. Even if home investors in San Antonio have purchased the home at auction, you can still redeem the property.
Learn More Here: https://statutes.capitol.texas.gov/Docs/TX/htm/TX.34.htm
Stop your house from being sold for back taxes by using the following methods:
Paying the back taxes 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.
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.
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.
When you need to sell your house in San Antonio fast to avoid foreclosure, a traditional real estate agent won’t always be able to get you what you are looking for.
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