When you receive a Notice of Default (NOD), you probably have missed a few consecutive mortgage payments, and your lender is taking steps to foreclose your house. We know how important it is for many American to stop foreclosure and retain the ownership of their dream home. Stopping foreclosure in Texas isn’t as impossible as you might think, but you need to be informed about your options, and take appropriate actions. Here are some options you can explore if you or your loved ones are facing foreclosure.
As a disclosure, this article is written for educational purposes only and does not serve in any way, shape or form a legal advice. Please consult an attorney for legal advice.
Communicate with your Lender
The easiest way to stop the Foreclosure in Texas is to communicate with the mortgage company. The homeowner can request to change the amount owed each month. This will help if the monthly payments are not easily payable and subsequently ease the borrower’s financial burden.
The other permanent solution is asking for a loan modification. It allows homeowners to make lower payments over an extended period. The Home Affordable Modification Program, Homeowner Affordability and Stability Plan (HASP) allow homeowners to refinance to reduce monthly payments. “If your mortgage payment is more than 31 percent of your monthly income, for instance, this program offers financial incentives to lenders to lower the monthly payments.”
If a borrower is facing 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.
Most lenders try to compromise on the situation when your home is ready to be auctioned. They try the possibilities to get everything back on track and provide options of getting back to mortgage payments instead of foreclosing the home.
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. Many times, a quick call to a sympathetic lender can be home-saving.
Seeking help from third parties is also a vital option. Sometimes, the process involved in dealing with the lenders are too much for a single person to handle. Therefore, seeking the help of professionals at this stage will lessen the stress and hassles and you will be provided with a multitude of options to stop the foreclosure process.
Foreclosure avoidance counselor can be contacted at first place. 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 hire an attorney, and seek help of courts. The attorney can help in giving viable options on stopping the foreclosure immediately. 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, but attorney fees can be costly and be counterproductive. You might be able to delay or stop the foreclosure process but be left with extensive bills.
Bankruptcy might save your foreclosure. The federal law prohibits mortgage lender or debt collectors from payment collection activities when you file for bankruptcy. The foreclosure process will be frozen as it is considered as a collection activity and it is prohibited when you declare yourself bankrupt.
Actually, the bankruptcy simply buys you more time in case if you lost your job or recover the loss in your business. The trustee of bankruptcy simply acts as a mediator between you and the mortgage lender. Filing bankruptcy will not let you off the hook for your debts. This will only allow you and the lenders to have a reasonable possibility of repayment and ways of bringing it back on track.
Sell your House and CASH out Before the Bank forecloses
If the Homeowner is unable to reach an agreement with the lender, you may stop foreclosure process in Texas buy selling the property to a cash buyer before the lender takes it to foreclosure auction. Most investors will generally offer less money than if you retail the house, but they buy Houses in “AS-IS condition, and the homeowner doesn’t have to do any repair. In addition, they can close quick.
Foreclosure is indeed a scary threat to your credit that could potentially leave you homeless. For some homeowner who is no longer able to afford the house, this may be the best option because it allows homeowners to cash out some equity ( if there is any equity in the house ), and also save the homeowner’s credit from being ruined by foreclosure.
Get a No-Obligation Cash Offer Within 24 Hours
We are investors and help homeowner stop foreclosure in Houston, TX. 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 832.295.6455. Wody Buys Houses in Texas and can close within a couple of days if absolutely necessary. We pay fair prices and understand your situation. It has to work for both parties and we only move forward if everyone is happy.
Give us a call and we will help you in buying your house for cash at an absolute good price.