The reality of facing foreclosure can often be a challenge for anyone involved. The stress and pressure can create an ‘ostrich effect’: where we simply bury our heads in the sand and pretend the looming predator will go away.
Texas is a proud state filled with proud people, and we tend to face our problems by working harder rather than accepting guidance. Too often the helpful Texas foreclosure options go unread, and doing nothing to solve the issue can result in the bank buying your house at auction, and a number of financial penalties that will haunt you for years.
In fact, doing nothing is the worst thing you can do.
When we finally face the problem head on, the pressure can be at boiling point. Months of inactivity and worry can make it seem like it is impossible to get out of the situation, when in actual fact, Texas foreclosure options are quite simple, and can be effortlessly managed by professionals who have dealt with this often delicate situation before.
To keep things simple here is what you can do:
Texas Foreclosure Options
Modify your Loan –
Approach your existing mortgage company to discuss the possibility of restructuring the terms of your loan to better suit your financial situation. Longer terms would reduce monthly payments, whilst raising your overall loan could give a timely cash injection.
Loan modification can present a good Texas foreclosure option to some, but be wary and be logical. Is this the solution to the problem, or are you just digging yourself deeper into a situation that you should clear out of? It depends on your circumstances, and for that you have to be honest with yourself.
Again, the initial action here is to speak to your lender and be clear about your situation. I doubt your mortgage company is a monster, more than likely they have come across your situation before and will have a process in place to help. Forbearance can be seen as the lender meeting you in the middle, providing a temporary payment reduction or even a period of suspended payments.
Forbearance is your bank working with you to create a solution to a mutual problem and is one of the best Texas foreclosure options for the short term. Forbearance will severely damage your credit rating, and again, you must be clear that you are not just providing a short-term solution to a long-term problem, as it brings larger mortgage payments in the future.
Deed in Lieu of Foreclosure –
In this situation, the homeowner simply hands the house back to the bank (instead of the bank foreclosing). It is generally required that all taxes and mortgage payments are up to date, and the home is not in a state of disrepair.
Whilst this is a good Texas foreclosure option, it is only relevant to those who are prepared for the situation. It has to happen in the first instance due to most mortgage agreements stating that the bank must foreclose if there is any failure to make payments.
Filing for bankruptcy can mean liquidating your debt in an attempt to wipe the slate clean and have a fresh start. There are advantages to bankruptcy depending on your individual circumstances, where it may be possible to keep your home depending upon whether you file for Chapter 7 or Chapter 13 bankruptcy, which is determined by the value of your property.
Whilst bankruptcy may appear to be a good Texas foreclosure option, you should really consider whether it is right for your individual circumstances. Bankruptcy can haunt a person for many years, affecting their ability to work and live, and is not a decision that should be taken lightly.
Short Sale –
This situation arises when you owe more on your property than a current valuation, be it due to missing payments or your home being in need of repair. If you have a qualified buyer, the bank may agree to discount or ‘short’ the difference in order to resolve the problem.
A short sale requires a specific set of circumstances and can take months to negotiate. A short sale will damage your credit report, but not as severely as a foreclosure or some of the other Texas foreclosure options.
Sell the House –
This can be the quickest and simple solution to the problem: just sell your house. During a consultation, we will make you an offer for your home, one that will be fair, and we can complete immediately if you agree this is the best option for you.
We understand that sometimes it isn’t as simple as just selling your house. This option is better for those with little or no equity in their homes, where those with a shortfall in finances would have to seriously consider whether swallowing debt was their best solution.
So let’s get started…
So you see, it really isn’t all that bad. The steps you can take to resolve the situation are really quite simple once you decide which one is the right course of action for your own individual circumstances.
At Save My Texas Home we are here to help. We have helped countless numbers of people in the same situation as yourself, and we can help you discover the Texas foreclosure options and solutions that work best for you.
Call us today, we are real people who know the industry. We will listen, understand, and help. We can figure out the best Texas foreclosure option for your unique situation and begin to get the process underway.
Remember, doing nothing is the worst thing you can do.
Don’t be an ostrich; take control and set yourself on the path to freedom. Call us today.