How Short Sale Stops Foreclosure in Texas

The first thing to remember about short sale as a solution to stop foreclosure in Texas is that it’s ultimately up to the lender to approve. Many lenders will not consider short sale an option unless the borrower is more than 90 days behind in their mortgage payments. After all, with a short sale the lender is agreeing to let the home be sold for less than what is owed to them. So unless there is solid indication the borrower may go into foreclosure, it’s not in the lender’s best interest to agree to a short sale.

However, if a mortgage is likely to go into foreclosure then a short sale stops foreclosure and lender’s are often willing to allow short sale because even though the house will sell for less than what the borrower owed, it will save the lender the hassle of filing for foreclosure and all associated fees with having to transfer and/or list the property.

Basically, short sale stops foreclosure in Texas because it’s a mutual solution that makes for a better outcome for both the lender and the homeowner than foreclosure would be. For the borrower, opting for short sale saves them from the hassle and embarrassment of having their home foreclosed upon, and it also saves their credit (at least from taking any more hits than it is likely to if the process draws out, and certainly MUCH better than the effects of bankruptcy on a person’s credit.)

Short sale tends to be a good option for borrowers who owe more than their house is worth. For borrowers with a fair amount of equity, you might want to look into Equity Partnering. If you’re unsure (or even if you think you know which option you want to pursue), why not utilize our free assistance? We’ve helped hundreds of Texans avoid foreclosure and in many cases keep their homes. We can help you discover all the options available to you, help you choose, and most important, we can walk you through every action in the game plan we design with you.

Give us a call at 512-271-5044 or fill out the form on the right to get in touch with professionals waiting to help you. Our consultation and assistance is free, so why hesitate? Call now.

Lenders vary, but it is common practice for a lender to require a variety of documents before they will consider or approve a short sale. For some this includes a hardship letter (written documentation) stating why it is the borrower has fallen behind in paying their mortgage. the borrower may also be required to submit supporting documents such as pay check stubs, tax returns and statements listing personal assets.

We can help you through this process, but first let us evaluate your situation and see if there are better options available to you. Let us help you determine if short sale stops foreclosure in your case, or if it is even the best option. Many times people overlook or just plain don’t know about the many additional options they have to stop foreclosure in the state of Texas. The most important thing is to not waste time. Even if your lender requires at least 90 days delinquency before granting a short sale, there are other options, IF you take the bull by the horns and get started now.

Let us help! Our services are free, from consultation through creating game plan and walking with you through every step in the plan. Fill out the form or call us and we’ll help you stop foreclosure on your house today.

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