How to Avoid Foreclosure in San Antonio

Foreclosure is an unsettling experience for many people. Yet, it is a reality many cannot avoid due to a number of reasons. Apart from the gross irresponsibility, often thought to be a major factor on the part of the mortgagor, there are other uncontrollable factors that arise out of the vagaries of life. These include economic depression, mortgage, loss of job, and poor health condition to mention but a few. Any of these can turn a person into a mortgage delinquent. The problem can also be from the mortgagee through a sub-prime that introduces a low interest at the beginning of a mortgage and eventually spirals up to meet the prevailing market value of the property under mortgage.

San Antonio, Texas has the shortest foreclosure process. It takes just 40 some days compared to other states such as Virginia, Delaware, Maine and Alabama where the process is completed in 166 days, 168 days, 182 days respectively. Foreclosure usually takes place when a borrower or mortgagor defaults continuously in payment for period of two months. Once this happens, a lender or a mortgagee can file a process of foreclosure, which varies from state to state.

A mortgage is a loan that is accessed and secured by a real estate collateral. In this case, the mortgagor’s house or apartment becomes the collateral. Mortgage can also be legally conceived of as a kind of lien which allows the lender to take a contingent interest on the loan. But, it can also be regarded as a deed of trust (DOT) which is similar to selling a property and rep0ssessing it through repurchase. The homeowner in this regard appoints DOT trustees who then hold it (property) for him in trust in behalf of the lender who is also a beneficiary. This is the method used in San Antonio.

In San Antonio, the process of foreclosure is through non-judicial means. Due to this, foreclosure requires painstaking and stringent process of filing legal documents and notifications. Usually in San Antonio, the property title is always in the custody of DOT trustees until the borrower is able to make full payments on the mortgage and then the lender withdraws his lien. The deed of trust, also called a mortgage, contains a legal provision: power of sale which confers on the trustees the power to foreclose on the property.

As mentioned, foreclosure in San Antonio requires stringent measures. First, the lender sends a notice of default to borrower through the servicers, demanding the payment of past unpaid loans and then gives the borrower twenty days to pay. Failure to pay on or before the expiration of these days results in the initiation of foreclosure proceeding. Second, at the end of the twentieth day, before the commencement of foreclosure, another notice is filed in the county where the property is situated. Finally, a notice is posted again to the borrower and the creditors who have offered a lien to the borrower. Third, a day, usually Tuesday, is set aside to offer the property for a public sale to the highest bidder at an auction, even if it falls on a public holiday. In a situation where the deed of trust does not contain the power of sale clause, lenders can proceed to the county court and institute a legal foreclosure proceeding against the borrower. In this way, they can get a judicial foreclosure which grants them the authority to dispose of the property at an auction. The foreclosure can usually be brought to a conclusion if it is not contested by any party. Once a property has been auctioned off, the borrower cannot reclaim it any longer by making full payment of the loan in addition to the cost.

Foreclosure can be avoided through a number of voluntary processes. They include mediation, modification, forbearance and refinancing. Mediation is a pre-closure strategy between the home owners and the servicers, who may be a third party, different from the lender. It usually involves doing all the necessary paperwork and having authority to accept the resettlement offers. Modification requires the extension of the maturity date of the mortgage and this allows the borrower to add the dues to the end of the mortgage and make readjustment, both temporary and permanent, to reduce interest rate. In the case of forbearance, the mortgagee can forebear the defaulted loans. What this means is that the lender may decline to proceed on foreclosure. Refinancing occurs when a borrower gets a new mortgage in order to reduce monthly payments and interest simultaneously.

Contact us for Free assistance to save your home from foreclosure today. Our services are free and we’ve helped many Texans save their homes and their credit. Fill out the form or call us at 512-271-5044

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