It is quite a stressful situation when your home in Texas is at the risk of foreclosure due to non-payment of mortgage. However, there are ways to help stop foreclosure and make the impact as little as possible on your life. Texas is a trustee state, which means in the case of failure to make your loan payments, your home can be sold at the request of the lender without any court intervention.

According to the laws of Texas, foreclosures take place on the first Tuesday of a given month. Even if it happens to be a public holiday, the foreclosure sales will occur anyway. Before starting the process of foreclosure, the lender sends a letter that allows you at least 20 days to pay the default amount on the loan. When the given period expires, the lender starts the foreclosure by mailing you a notice mentioning the amount due and the schedule of the sale.

If you want to stop a foreclosure you need to know what options you have. You need to be aware of the mistakes people usually make facing foreclosure. Since one mistake can cost your home and considerable financial loss, whatever option you choose must be contemplated with professional assistance. You don’t have to pay a fortune either, as assistance from professionals such as Save My Texas Home can help stop foreclosure and is absolutely free. Now let’s take a look at three of the ten options you have to stop foreclosure.

 

Forbearance Agreement

In case you are temporarily unable to pay your mortgage due to a temporary decline of your income but you will be able re-commence payments soon, contact the lender and ask for a forbearance agreement. If you choose to have Save My Texas Home help, they can act as liaison between you and your lender.

Under a forbearance agreement, the lender agrees to stop foreclosure with conditions that allow you to pay a reduced amount for a given period, considering you are facing temporary hardship such as unemployment. After the period, you may have to pay more than the regular amount to compensate the forbearance amount or you can go for a loan modification, depending on the mutual agreement.

Usually the lending organization reviews your financial condition after the forbearance period to see which option is more pragmatic for you. Hence it is important to keep contact with your lender organization. Professional advices and tips from Save My Texas Home on the forbearance agreement will not only help stop foreclosure; it will also assist you with having a better agreement that you can maintain.

 

Loan Modification

Under the HAMP program, you can apply for a loan modification that will stop the mortgage company from going forward with the foreclosure proceedings, if accepted. Please note that you have to apply for the loan modification at least 10 days before the foreclosure sale. However, the lender may not accept the loan modification. That’s why you need to check and be sure that your loan modification proposal is accepted. So get help from a professional service such as Save My Texas Home who can check with your lender about what options you have for loan modification and stop foreclosure from taking place.

 

Filing Chapter 13 to Help Stop Foreclosure

Let’s say you cannot have a forbearance agreement with your lender and your application for loan modification has been denied. What else can you do in this situation? Please be assured that you can still save your home. If you file chapter 13 it will immediately stop a foreclosure sale from occurring. While this is not the best option and Save My Texas Home will do everything in their power to help you find a better solution, bankruptcy is an option.

Filing chapter 13 means making a petition for bankruptcy which allows ‘automatic stay’ and stop the foreclosure, given that the lender company is notified. After that, your attorney needs to propose a chapter 13 plan to catch up with the delinquent payments over a period of usually 3 to 5 years. The Federal Bankruptcy Court will protect your home as long as you are under chapter 13 and pay according to the plan. Save My Texas Home can help you for free with planning your payments so that you can keep your home.

Among the options mentioned here, choose the one that is most suitable for you, or see a more complete list of options here. Save My Texas Home can help you with finding the best option from the ones listed, or can come up with an even better custom solution to help stop foreclosure upon analyzing your situation. Call Save My Texas Home at 512-271-5044 or fill out the form today. Consultation and assistance is always free.