If you are constantly falling behind on mortgage payments, then the lender might choose to use his right as the holder of lien and get the house auctioned. If the lender is in Texas, then there are certain processes that the lender has to follow and file the document in the specific county for Texas foreclosure options.
However, rather than letting your property go away from your hands, you must act wisely, be strong, and save your house. The foreclosure situation is not as bad as you think. Here are your Texas foreclosure options.
Talk to the lender
This is surely challenging because you will need to talk about your finances, the options for payment, your home, and other such details. However, this is an important discussion because procrastination will not really help you solve the problem. So, do not think much and discuss with your lender as this is a wise Texas foreclosure option.
While talking to the lender, ask about the options are feasible for you according to your current financial situation. Forbearance and loan modification are some options.
Short sale
When considering other Texas foreclosure options, short sale is not something that can be ignored. A short sale is when a homeowner sells his house for a lesser price than the due mortgage amount. However, it will be good to partner with an experienced real estate agent and consult an attorney if you wish to walk this path.
The buyer in this case is not the bank and the amount received after sale goes to the lender. The lender can either forfeit the balance amount or ask the borrower to pay the difference to meet the original mortgage amount.
Deed in lieu of foreclosure
In this Texas foreclosure option, the homeowner in a way hands over the house keys to the lender. The lender then makes a sale and recovers the full or partial loan amount. This option damages the credit history but is little better than foreclosure.
Bankruptcy
Most of us dread hearing the term bankruptcy; but if you are looking for a Texas foreclosure option, then bankruptcy can allow you to keep your house.
When you file Chapter 13 or Chapter 7 bankruptcy, an Order for Relief is issued by the court. As per this order, the homeowner is allowed for “automatic stay”. Also, the creditors are supposed to stop their collection process with immediate effect. So, till bankruptcy is finalized no action can be taken by the lender. This can take up to four months. Both bankruptcy and foreclosure can mar your credit score; but at times bankruptcy is preferred as it helps in rebuilding credit score quickly later.
Act Fast and Stop Foreclosure
The above-mentioned Texas foreclosure options will help you to stop foreclosure. However, once the lender files a defaulter notice, there is nothing much that you can do in this regard. So make sure that you act fast and start the process ASAP.
Let us help you
At Save M y Texas Home, we can help you make the right decision with regards to various Texas foreclosure options. We will carefully listen to your problem and provide you a solution that is best suited for your financial situation. We have helped thousands of homeowners come out of this pressure situation. Give us a call today!