Understanding The Beginning Of The Foreclosure Process In Texas
One of the most difficult experiences a homeowner can go through is foreclosure. It can be financially and emotionally devastating, and it can damage your credit for years to come. If you’re facing foreclosure in Texas, it’s important to understand the process so that you can take the necessary steps to protect your rights.
If you wait too long, you may find yourself in a situation where you are unable to sell your property and are forced to move out. With this in mind, it is important to be aware of the foreclosure process in Texas so that you can take action to prevent it from happening to you.
The Beginning Steps To A Foreclosure In Bexar County
The first step in the foreclosure process is known as pre-foreclosure. This is when the lender sends a notice to the borrower informing them that they are behind on their payments and that they need to catch up within a certain period of time or face foreclosure.
If the borrower doesn’t catch up on their payments, the next step is a Notice of Default and Intent to Accelerate, which is sent by the lender informing the borrower that they have failed to make their payments and that they have 30 days to catch up or face foreclosure.
If the borrower still doesn’t make their payments, the next step is a Notice of Acceleration and Posting of Foreclosure, which is sent by the lender informing the borrower that their home will be sold at a foreclosure auction in 21 days. At this point, the borrower has two options: they can either try to sell their home to prevent foreclosure or they can let their home be sold at auction.
What Is A Pre-Foreclosure In Texas?
When a homeowner misses 3-6 months of mortgage payments, the lending institution will issue a warning, notifying the homeowner to pay or lose their home. This period is known as “pre-foreclosure.”
Banks and mortgage lenders typically provide three months for the homeowner to become current. Of course, this number can vary by bank and situation sometimes.
If a homeowner fails to make the necessary payments, the bank will foreclose on the home, assuming ownership, and evict the homeowner. Thankfully, during this stage of the foreclosure process, a mortgage holder has the opportunity to take advantage of several options to prevent losing their home.
What Is A Notice of Default?
The “Notice of Default and Intent to Accelerate” gives formal notice about the borrower’s default. This allows them an opportunity (at least 20 days) for curing it, although most substitute trustees handling foreclosures for banks in Bexar county feel that 30 days to cure is the safest way to ensure a proper foreclosure is being conducted.
The notice of default is a very important step within the foreclosure process that gives people with an interest in the property to step forward and claim their rights – before it’s too late. If you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action.
Options Available To Homeowners At The Beginning Of The Foreclosure Process
You may be able to quickly sell your home to a reputable real estate investor in San Antonio TX like Capstone Homebuyers
We use cash to pay the months of back-payments owed (or we *may* be able to work out something with the lender that relieves all or part of your back payments). We can buy your San Antonio area home quickly, often in just a week or two, will pay in cash, and takes the stress out of trying to find a buyer.
You can contact the bank and ask them to permit a short sale
In a short sale, you’ll sell your home for less than it’s worth, and the bank will take the loss as a tax write-off. In some short sales, you may still be required to pay the difference to the bank if the house doesn’t sell for what is owed on the loan.
You may be able to declare bankruptcy
Bankruptcy can buy you time to pay your debt. Bankruptcy will remain on your credit report for years and can cause significant damage. There are some risks that go along with this strategy so make sure you understand the pros and cons of filing bankruptcy to avoid forclosure.
Request a loan modification
This is when the bank will allow you to wrap your back payments into your loan or tack them onto the back end of your loan. While this option can save you from moving closer to a foreclosure, it can be costly at the end of your loan.
Be Aware Of Foreclosure Scams
If you’re in foreclosure and are looking for a solution to avoid foreclosure and get foreclosure help in Bexar County TX, here are some “solutions” some less-than-honest companies may offer and what you need to watch out for.
- Charging upfront fees to get mortgage assistance from lenders. Fannie Mae says, help is free. Some companies will try to charge you for talking with your lender about your mortgage to find a solution. Don’t fall for it; this is one of the classic foreclosure scams. You can talk with your lender about the mortgage and your options anytime with no charge, or work with a company that will do your loan counseling for you for free.
- Signing over the deed to your home at your kitchen table. Never sign over the deed to your house unless you’re working with your mortgage company to forgive your debt… unless you’re physically selling your house to that company. If that’s the case, ask the company to do everything at a reputable attorney's office so everything is on the up and up (always consult legal advice before ever signing over your deed).
- Try to say you don't need to work with a professional or have an attorney handle the paperwork. Selling your house, whether you’re in foreclosure or just need to sell quickly, should be done with the help of certain professional services. With every house we buy, we always use a neutral 3rd-party title company to handle the closing, drawing up the closing documents, and all related paperwork.
Sell Your House To A Reputable San Antonio Based Company
You’re about to lose your home and you don’t know what to do. You’ve tried talking to your bank, but they won’t help you.
We can help people avoid foreclosure at the last minute. If your house is facing foreclosure in days, we have solutions that can help you prevent foreclosure.
Foreclosure doesn’t have to be inevitable. Capstone Homebuyers offers solutions that can help people save their homes at the last minute. Contact us today for more information.
