How to Fight a Non-Judicial Foreclosure in Texas
Texas law permits both judicial foreclosure, which involves filing a foreclosure suit in a Texas court, and nonjudicial foreclosure, which is conducted without court involvement. A lender may carry out a nonjudicial foreclosure in most cases if the deed of trust contains a power-of-sale clause. Because nonjudicial foreclosure is faster and does not require court costs, this method is typically preferred by lenders. If you are a Texas homeowner who is facing nonjudicial foreclosure, several strategies may help you fight the action and keep your home.
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Instructions
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Pay the lender the past-due amount shown on the notice of default. Under Texas law, the lender must provide this notice and give you 20 days to cure the deficiency before proceeding with a foreclosure. Paying this amount will bring your account current and stop foreclosure action.
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Contact your lender to discuss repayment options. Although nonjudicial foreclosure is typically less expensive and time-consuming than judicial foreclosure, the lender may be willing to avoid foreclosing on your home if you demonstrate willingness and ability to repay your delinquent balance. The lender may agree to spread out the past-due amount over several payments or grant a forbearance to postpone payments during a temporary financial crisis.
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Ask your lender about obtaining a mortgage modification. This strategy can reduce your interest and catch up your past-due balance, and it may involve forgiveness or deferral of your delinquency. Because lenders receive federal incentives for completing mortgage modifications, your lender may be willing to help you obtain a modification to avoid foreclosure.
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Contact an attorney to contest the nonjudicial foreclosure in a Texas court if the foreclosure was made in error. The foreclosure action may not be valid in Texas if the lender failed to provide a notice of default, or if the lender's trustee made an error on the foreclosure notice. Your attorney can help you determine if the foreclosure was initiated in error.
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Attend the court hearing after your attorney has filed a motion to contest the foreclosure and the court has set a date. Your attorney will explain to the court the error that was made in the foreclosure action. If you can successfully show that the lender made a material error, the court may deem the foreclosure action invalid.
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Tips & Warnings
Keep records of all communications with your lender, as well as all payments you make to your lender. Also, obtain any repayment agreement, forbearance or other type of agreement accepted by your lender in writing to avoid misunderstandings that may prevent you from avoiding foreclosure.
