Foreclosure is a scary process for most homeowners. When you acquire a mortgage, there’s a constant threat of foreclosure looming over your head. Knowing how to stop foreclosure from happening before it becomes a problem is an important thing for homeowners to understand.

Whether the continual payments are too high or a homeowner finds himself experiencing financial hardship, having your home seized by the courts is a real possibility. But even after missing a few months of payments and receiving a Notice of Default, losing your home doesn’t have to be inevitable.

With a general knowledge of the foreclosure process and determination to keep your home, you can learn how to stop foreclosure in Texas. We’ll show you how so that you can be prepared should you ever need to avoid a foreclosure.

Communicate with Your Lender

Although homeowners have several strategies to choose from when deciding how to stop foreclosure process, some everyday advice can be implemented to slow the foreclosure’s acceleration. Before making major life-altering decisions, consider some of these general tips when contacting your lender.

One of the easiest ways how to stop foreclosure in Texas is by communicating with the mortgage company. If a homeowner cannot meet the required monthly payments, changing the amount owed each month will ease a borrower’s financial burden.

Asking for a loan modification is one possible permanent solution. Loan modifications typically allow homeowners to make lower payments at higher interest rates or over an extended loan period.

If a borrower is on the cusp of foreclosure due to several missed payments, they can ask their lender about reinstatement. Also known as a temporary indulgence, a reinstatement allows homeowners to bring their loan current and proceed with their mortgage as before. However, a borrower must be able to afford to make the missed payments in addition to late fees and interest rates. Reinstatement might not be a viable option for homeowners with lasting financial issues.

Mortgage companies can also offer other plans to assist homeowners when asked. Repayment plans, for instance, allow borrowers to repay missed payments by making slightly increased monthly payments. These plans allow you to catch up while stopping foreclosure. All a homeowner needs to do is communicate with their lender and ask about current options to relieve loan debt. More times than not, a quick call to a sympathetic lender can be home-saving.

Seek Help

Seeking the help of third-parties is another way how to stop foreclosure in Texas. Although homeowners have several options when stopping foreclosure, sometimes the process is too much for a single person. Enlisting the expertise of professionals will lessen your stress while providing a multitude of options for keeping your home.

One option available to borrowers is contacting a foreclosure avoidance counselor. The U.S. Department of Housing and Urban Development (HUD) offers free housing counseling services to give homeowners the information and assistance necessary to avoid foreclosure. They’re offered in every state and can be found conveniently on HUD’s website.

Homeowners can also seek out help from the new Home Affordable Modification Program. Enacted by President Obama, the Homeowner Affordability and Stability Plan (HASP) allows homeowners to refinance to reduce monthly payments while implementing a special Making Home Affordable loan modification that can be applied by lenders. “If your mortgage payment is more than 31 percent of your monthly income, for instance, the new program offers financial incentives to lenders to lower the monthly payments,” adds Fraser Sherman, prominent finance journalist.

Borrowers can also seek help from the courts. The expertise applied when hiring an attorney can be helpful when wanting to know how to stop foreclosure immediately. Not every foreclosure process warrants legal intervention; nonjudicial foreclosures skip the courts altogether. If a homeowner feels like their foreclosure is unjust due to lender errors, unfair terms, or failure to follow legal procedures, they may have a viable lawsuit. These substantive defenses are considered the best legal way to stop the foreclosure process.

The Bankruptcy Option

Many homeowners find themselves at risk for foreclosure after accruing a large amount of debt. They might think filing for bankruptcy is the simplest solution to escape their financial troubles. In some instances and with enormous debts, that can be true. However, if a homeowner isn’t keen on a lengthy litigation process and wants to halt the foreclosure process immediately, filing for bankruptcy might not be the best strategy for how to stop foreclosure in Texas.

Once an individual files the petition for bankruptcy, federal law prohibits debt collectors from seizing assets to pay off what’s owed. Since foreclosure is considered a collection activity, mortgage lenders must halt the foreclosure process. Once in court though, the bankruptcy trustee’s role is to play mediator between the filer and creditors, not absolve debt. Going through the courts will buy borrowers time to make past mortgage payments, but it won’t stop the foreclosure process completely.

Filing for bankruptcy also has longer lasting consequences. Depending upon which chapter of bankruptcy you file under, the filing will remain on an individual’s credit report for up to ten years. During that period, it can prevent a homeowner from obtaining future lines of credit or borrowing from another lender. If a homeowner forecloses after filing, they’ll be unable to take out another loan and may be forced to live in an undesirable location until they can. Unless the consequences of bankruptcy are manageable to a homeowner, it’s not the best option when deciding how to stop home foreclosure proceedings.

Just be careful that you don’t end up paying attorneys the money you could have used to pay arrears and get out of foreclosure. Yikes!

How to Stop Foreclosure and Save Your Home

Although homeowners have several methods available to saving their property from repossession, some options are better than others. Selling your property to a cash home buyer before the lender takes it to auction might be the best way how to stop foreclosure in Texas.

Homeowners have the option to sell to a cash home buyer, even after a lender begins the foreclosure process. After defaulting but before the Notice of Sale, mortgage companies must consider selling if a borrower gets an offer from a buyer. Many lenders prefer this to other options because it saves them time, effort, and trouble when looking for home buyers at auction.

Selling to a cash house buyer is the best method to saving your home because it allows homeowners to keep whatever profit they make after paying back the lender. When homeowners sell, they gain standing in an otherwise powerless situation. Foreclosure is a scary threat on your credit that could possibly leave you homeless. By selling to a cash house buyer, homeowners gain the advantage of making their own decisions, acquiring money to use on their next property, and forego the foreclosure process completely. It’s the best option when needing to know how to stop foreclosure in Texas.

Get a No-Obligation Cash Offer Within 24 Hours

See, learning how to stop foreclosure isn’t as bad as you thought. If you’d like to see how much you could get for your house from a buyer that can close it fast, give us a call at 210-596-9669. We buy houses in San Antonio and can close within 2 days if absolutely necessary. We pay fair prices, but if our offer is not acceptable, you have absolutely no obligation to take it. It has to work for both parties and we only move forward if everyone is happy.

Give us a call and find out what we can pay you for your house!

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

Stopping foreclosure can be a pain for most. If you’re not sure what to do when it comes to foreclosure, don’t worry – I got your back.

In this article, we will look at how to stop foreclosure in San Antonio, TX. Most people aren’t aware that there are several ways to go about stopping foreclosure and sell your house before it goes to auction. Foreclosure prevention doesn’t have to be a difficult process.

First thing’s first.

Why does foreclosure happen?

There can be several different reasons why someone is unable to meet the financial requirements of their property and it is often involuntary and completely unpredictable, which can bring a lot of stress to the seller.

If you were unexpectedly fired or suffer a medical condition, if you face debt, going through a divorce or relocate to a new state and are in a tough financial situation, foreclosure is bound to happen on your property.

Although voluntary foreclosure doesn’t happen often, some house-owners do simply give up on their property if the value significantly drops – this often happens in small towns or even islands where the tourism is no longer working.

First steps you need to take in stopping foreclosure:

Take a look at the Department of Housing and Urban Development’s Foreclosure Avoidance Counseling list and select a counselor that will be able to assist you free of charge. If you are able to make payments, please do so. If not, talk to your lender and make a repayment plan.

Did you know there are several programs specifically aimed to avoid foreclosure and keep your home? Check out the Making Home Affordable program which offers lower monthly payments on your financial plan.

Ways of stopping foreclosure in San Antonio

So how do you go about stopping foreclosure? Here are 5 different steps that will help you avoid foreclosure.

1. Stay calm.
Before you make any quick decisions, weigh out all your options. Start the research.
2. Contact your lender
Rather than avoiding the situation, contact your lender and come up with a financial plan on how you will be able to do the foreclosure rescue. If you’re aware before hand that your payments might be late, you need to let them know.
3. Workout options
We’re not talking about fitness – your lender can provide you with options that will workout your loan arrangement. From a modification, repayment options, reinstatement, to even claiming bankruptcy, you will be provided with certain options that may work in your favor.
4. Refinance!
You are able to modify your loan and start with low payments and gradually move on to higher to compensate the difference.
5. Sell your property.

Claiming bankruptcy

Bankruptcy is one of the most secret ways you can prevent foreclosure. It is often not mentioned in the most basic foreclosure prevention tactics. However, it is by far the best option if everything else fails.

How filing bankruptcy can help?

It delays the foreclosure process by several months, buying you enough time to come up with a financial plan.

Filing Chapter 13 or Chapter 7 bankruptcy enables the automatic stay order. Automatic stay order simply means that your creditors are unable to collect money from you instantly. This is the best way to legally postpone foreclosure as the bankruptcy goes through the pending process for 3 to 4 months.
Please note that this time might be shortened if your creditor takes things to court and is able to proceed the sale. Bankruptcy must also be considered before the notice of foreclosure is given, otherwise the creditor will be able to proceed with the sale.

Chapter 13 vs Chapter 7 bankruptcy

Chapter 7: To qualify for a chapter 7 bankruptcy, you must have very little financial income. Your credit card and medical bill debts will be erased.
Chapter 13: In the case of foreclosure, chapter 13 bankruptcy will usually apply. You will have a certain amount of income and will be able to create a repayment plan with your assets while still keeping your property.
Nolo offers an excellent insight into the Chapter 13 vs Chapter 7 bankruptcy, which includes a simple table to explain the differences.

Other ways for stopping foreclosure in San Antonio

Pre-foreclosure sale, aka short sale.
Pros: You will be able to sell you home and get a sum of money in return.
Con: The value of your property will be significantly lower and your credit score might suffer.

Deed in lieu
Pros: You sell your home to the bank where you took out your mortgage.
Cons: Lower value and the loss of your home.

Not happy with these options? Looking to sell your property? Why not sell to a cash home buyer?

Sell to a cash home buyer

Selling your home to a cash home buyer is becoming a popular way of stopping foreclosure. Not only are you able to sell your home fast – when you call, the offer is usually given within 24 hours and your home, if needed, can be sold in just 2 days.

Pros of selling to a cash home buyer:

• Fast sale
• You get cash in hand
• No need to worry about repairs
• Quick and efficient

Although it is known that cash home buyers are usually able to offer less money than the value of your home, you are going to save money on closing costs ($750+) as well as other expenses which include repairs.

When it comes time to get paid, you should get the option of getting a check or having the money wired into your bank account.

Even if you don’t sell to Matt Buys Houses TX, feel free to ask us any questions you may have regarding selling your house. Give us a call now at 210-596-9669.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.

Most homeowners need to borrow money from the bank before buying a property. It’s often a necessary but unwanted acquisition due to lenders’ perplexing contracts, extensive regulations, and steep interest rates. But what happens when you cannot meet those monthly mortgage payments? You’ll probably unwillingly experience the dreaded Texas foreclosure process, and will be looking for help.

Homeowners dread the F-word, and for good reason. Foreclosures can leave you homeless while ruining your credit. Although lenders are required to inform you about the many consequences resulting from a defaulted loan, the Texas foreclosure process can seem sudden and life-altering. But how do foreclosures work? With knowledge and a little effort, you can effectively meet your state and lender’s guidelines to avoid foreclosure completely.

How Does Foreclosure Work

Although state laws and lender regulations can differ, the steps of a foreclosure remain relatively similar. The foreclosure process timeline typically begins when a property owner cannot make principal or interest payments on their loan. If the loan borrower cannot assume payments or foregoes communication with the lender, steps will be taken to ultimately foreclose on the home. If a homeowner cannot pay their mortgage, the property being paid for with the loan will be seized and sold.

The foreclosure process timeline initiates when a homeowner misses their first monthly mortgage payment. You won’t be penalized immediately; most lenders allow at least a week to make the missed payment without charging late fees. If a borrower cannot meet the payments, late fees, and interest after three to six months, the mortgage company will order a Notice of Default (NOD). The NOD provides information on the total amount owed and how much time an owner has to pay and is delivered by either a trustee or sheriff.

All foreclosures also include a Notice of Sale (NOS). The NOS is another physical document that is given to homeowners and posted on a property, usually within three months of the NOD. It identifies the date and time of the foreclosure sale where the property is publicly auctioned off to the highest cash bidder. Once a borrower receives a NOS, little can be done to salvage their foreclosed property.

The Types of Foreclosure

Even though the foreclosure process timeline is generally the same, there are different types of foreclosures allowed. Knowing their dissimilarities can help a homeowner resolve each with ease. According to the U.S. Department Housing and Urban Development, there are three different types of foreclosures: judicial, statutory, and strict. Their differences are minor but include court involvement, how notices are delivered, and the general outcome of the Texas foreclosure process.

A foreclosure is designated judicial when the process involves the courts. All states allow a judicial foreclosure, so knowing its procedure is vital. After the three to six months of missed payments, the lender files a lis pendens – “lawsuit pending” – with an attorney. This type of foreclosure involves the judicial system to provide evidence of a default while getting the court’s approval to initiate a NOS. If the borrower doesn’t respond to the NOD within 30 days of the filed suit, the courts will sell the mortgaged property at auction.

The process is a tad different with a statutory foreclosure. A statutory foreclosure is also known as the power of sale due to a common clause found in many deeds of trust. The clause allows the trustee to skip the court’s approval and sell the mortgaged property themselves, enabling a cheaper foreclosure process. If the homeowner dismisses the NOD or cannot pay within the waiting period, the mortgage company sells a home at auction. These non-judicial foreclosure auctions are typically more expedient than the court’s.

A strict foreclosure contains the simplest foreclosure process timeline, but only a small amount of states allow it. The lender will file a lawsuit directly once the homeowner defaults. If the balance is continually unpaid, the court will give the mortgaged property back to the mortgage holder, effectively skipping a home auction. The seized home is now deemed Real Estate Owned (REO) and is independently sold by the lender. A strict foreclosure usually only occurs when the borrower’s debt amount is greater than the property value.

Foreclosure Consequences

The Texas foreclosure process is time-consuming, complicated, and costly. It also comes with great consequences to the homeowner that defaults on their property.

Although foreclosures wipe out some debt, some stick with the homeowner even after relinquishing the property. The original mortgage obtained at the home’s purchase and some debt from a second mortgage can be paid after the home is sold. However, property owners are still required to pay second mortgages back to the lender if they’re not paid off in full after a foreclosure sale. When homes depreciate or there’s a significant drop in the real estate market, the foreclosure will be sold for less than what is owed. A court could decide to enter a deficiency judgment against the homeowner. The judgment holds the owner accountable for paying the difference and allows the lender to seize any other assets the property owner may have.

Another major consequence deals with the borrower’s credit. Mortgage foreclosure is considered almost as damaging as filing for bankruptcy to most tax experts. A foreclosure, no matter the type, will remain on the credit report for seven years. This seriously limits a homeowner’s ability to borrow in the future and may have a significant impact on your credit score.

How to Stop a Foreclosure

There are several stages within the Texas foreclosure process in which to bring your loan current and halt the bank from seizing your home.

The easiest way to stop a foreclosure is to catch up on the missed mortgage payments. Sometimes there are extenuating circumstances keeping a homeowner from repaying. But if you can afford it, pay them off; you’ll avoid a foreclosure on your credit and be able to continue living at your current residence.

Another way to exit the foreclosure process is by getting a loan modification to lower payments. A borrower can achieve this by either requesting their loan to be paid over a longer period or at increased interest rates. Many lenders are willing to work with homeowners to make reasonable payment options.

Homeowners can also avoid foreclosures altogether. Lenders are willing to work with cooperative borrowers, so communicate. If a mortgage company sends a NOD, don’t ignore it! Responding to the notice and staying in contact with the lender will slow the foreclosure process.

You can also prevent foreclosures by knowing how much you owe each month and save accordingly. Although this is an obvious step, many homeowners will prioritize other expenses over paying their monthly mortgage. Create a budget and save the payment due date in your calendar. Responsible homeowners keep up with what they owe.

The threat of a foreclosure can be scary to a homeowner with an existing mortgage. But knowing how foreclosures work will help you avoid the consequences of a defaulted loan. By utilizing these preventative measures, you’ll be able to skip a financially debilitating foreclosure completely, and continue to live in your dream house!

An Option to Avoid the Foreclosure Process

If you are facing foreclosure and have run out of options, you might consider getting a cash offer from a home buyer. Matt Buys Houses TX pays cash for houses so that you can sell before and close before the foreclosure. This usually allows you to keep the foreclosure off your credit and keep some of your equity.

Give us a call at 210-596-9669 to learn more about how we can help you avoid foreclosure in San Antonio.

The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.