Best Way to Prevent Foreclosure In Texas
By Danny Johnson | Published 9/15/2022, 7:02:00 PM
Preventing foreclosure is possible in Texas. Here are some steps to take to get out of that tight spot. Stop foreclosure before it is too late.
- Prevent Foreclosure: Is It Possible?
- Important things to know about foreclosure prevention in Texas
- How to Prevent Foreclosure
- Coming To An Agreement
- Is A Short Sale The Answer To Avoid Foreclosure?
- Bankruptcy As A Means Of Foreclosure Prevention
- Deed in Lieu Option
- Foreclosure Prevention Services
- Avoid Foreclosure By Selling Your San Antonio House Before Auction
🗂 Table of Contents
Prevent Foreclosure: Is It Possible?
The short answer is yes. You can stop foreclosure if you move quickly.
Important things to know about foreclosure prevention in Texas
You really need to understand what happens in a foreclosure. It will help you to learn what you can do to avoid foreclosure actions. It is a distressing situation to be in and not one that most people plan on having to deal with. This means that when they are faced with this situation they don’t have the knowledge needed to deal with it. Now they must seek out foreclosure help before they lose their home.
How to Prevent Foreclosure
You probably have been aware that you are heading into a foreclosure situation. This is based on the fact that you have not been able to make your mortgage payments. Normally after you have missed 3 of these payments you will receive a notice of default (NOD). Now you will have to look for foreclosure prevention assistance in Texas so that you can attempt to avoid foreclosure. This is to help you with this serious matter. Learning how to keep your house when in foreclosure means taking some positive steps on your part.
Coming To An Agreement
Most lenders do not want to go through the process of foreclosure. They will try to offer some type of foreclosure help by being open to a solution. The lender may be willing to make some type of compromise with you. This may be even if the property has been scheduled for auction. It is important that you never give up trying to determine how to prevent foreclosure.
Even though you may be trying to reach a solution with the lender this should not be your own action. You should look at foreclosure prevention services at the same time. Don't just rely on trying to compromise as your only foreclosure solution. This could mean you are passing up other helpful opportunities. Opportunities like those that may help with foreclosure prevention, especially in Texas.
Is A Short Sale The Answer To Avoid Foreclosure?
If you have run into difficulty with paying your mortgage you may have decided to put your house up for sale. Some individuals will do this as a means of foreclosure prevention. If you get an offer to buy the house, perhaps from a house buying company, the lender should be notified of this. The lender will have to give it some thought.
Once a house goes into foreclosure it is usually put up for sale anyway. Lenders accepting short sales can avoid many of the hassles that come with foreclosures. Your foreclosure prevention efforts should be focused on getting your house sold quickly. Make your Realtor aware of your situation.
They can apply aggressive efforts to get the house sold...but you still might not get it sold before the auction date arrives. Once an offer comes in then you will have to negotiate with the lender to take the offer. There is a downside to the short sale.
This is if you are also trying to seek out how to keep house when facing foreclosure and looking for foreclosure solutions.
Bankruptcy As A Means Of Foreclosure Prevention
Once you file for bankruptcy any further action against you in regards to the foreclosure is put on hold. What is important to realize is that bankruptcy is just a temporary solution. Your financial situation may be temporary. Perhaps you will be able to handle your mortgage situation in the near future.
Bankruptcy can buy you some time. There are different forms of bankruptcy. In some cases suitable terms can be arranged to catch up the arrears. Also, arrangements for future mortgage payments can be made. You will have to meet past and future financial mortgage obligations with your bankruptcy. If your intention is to keep the home.
Deed in Lieu Option
To aid in foreclosure prevention, you may want to consider Deed in Lieu. What this means is that you are simply giving ownership back to the lender. While this may sound simple it's not something that most lenders want to do. They are concerned about a potential law suit from the homeowner. This could be claiming they didn’t understand the legalities of this. The lender also would have to accept the responsibility of any other mortgages on the home. Including home equity line of credits. There is a downside to this. The homeowner is giving up any attempts to try and prevent the foreclosure. There may be a possibility to prevent this through foreclosure prevention services.
It may be that you can find someone that is willing to assume your mortgage. The problem is most lenders have a clause built into the mortgage contract that prevents this. You may be able to negotiate with the lender to remove the clause. This would allow a buyer to take over the mortgage. This would give them ownership of the house provided they honor the mortgage. There is a downfall to this. Although you may be preventing foreclosure, you are still going to lose your home.
Foreclosure Prevention Services
When you are looking for foreclosure prevention in Texas solutions you will want to do some research. See if there is a foreclosure prevention program that can assist you. Part of this service includes counseling like loan modification. In some cases you may be able to be involved in a foreclosure prevention program... one that can arrange a short sale opportunity.
This could mean that you may still be able to remain in your home even though you would no longer own it. It is important when choosing a service to rely on that you choose one that is reputable. You want a service that is going to provide you with resources that can help you with the situation you are in.
There is no doubt that the threat of foreclosure is distressing. It puts one in a situation where they could possibly lose their home, and all that they have invested in it. It is highly important to seek out as much help as possible. Knowing your rights when in this situation will help you make informed decisions. There are several steps that you can take to help prevent the foreclosure but you have to put the time and effort into this.
Avoid Foreclosure By Selling Your San Antonio House Before Auction
There is another alternative and that is to sell your house fast before auction in San Antonio. Danny Buys Houses can make you a cash offer to buy the house as-is. Paying cash for houses allows us to close very quickly...in as little as 2 days if absolutely necessary. Click here to get a cash offer for your house or contact us. We look forward to talking with you about what options you have.