Slowing Down the Foreclosure Process in Texas
Virtually every homeowner dreads even thinking about a foreclosure. But things change. People lose jobs or they have unexpected expenses or any number of other problems. In Texas it takes only 21 days of being behind in your mortgage payment before the bank can evict you and sell your home. Legislation is pending to extend this time period, but regardless of whether the bank has 21 days or 45 days (under the proposed new Texas law) there are things you can do to slow the process down even more.
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Instructions
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Contact your bank and explain the problem to them before the foreclosure process begins. If you present your lender with a plan to keep making modified payments, your lender may be willing to work with you to prevent foreclosing.
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Demand to see the original mortgage note. In Texas the lender must show you the original mortgage note before foreclosing. Because mortgages are often sold repeatedly among lenders, it can take a considerable amount of time for your lender to come up with the proper paperwork.
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File Chapter 7 bankruptcy. This is a drastic step. Banks must stop the foreclosure process if the borrower files for bankruptcy. Under Chapter 7 most of your debts are wiped away---but not your mortgage debt. Chapter 7 makes sense if you will be able to bring your past due mortgage payments (plus interest and penalties) up to date and make all of your future mortgage payments once your other debts have been wiped clean.
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File Chapter 13 bankruptcy. Again, this is a drastic step. Chapter 13 is a reorganization of your debts and can include a modified (lower) mortgage payment. This option is only available if you still have a regular and consistent income. You must present the bankruptcy court with a written plan for making your reduced mortgage payments on time in the future.
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Hire an attorney and file a lawsuit against your lender. It is unlikely you will win, but this is a stalling tactic---albeit an expensive one. Now you will have a lawyer's fee to pay as well as your mortgage payments.
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Sell the property. This can be extremely difficult in Texas with its short foreclosure process. If the house must be sold for less than the full amount you owe (known as a short sale), you must have a written agreement with the lender that it will not demand that you make up the difference.
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Contact a HUD-approved mortgage counselor to help modify (reduce) your mortgage payments. Be careful, however, of non-HUD--approved companies, as many such companies are scams.
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Tips & Warnings
Think about your situation as dispassionately as possible before beginning any process to save your home. Ask yourself if you can really afford to make even modified mortgage payments.
Texas has the fastest foreclosure process in the nation so steps to slow the foreclosure process they must begin immediately.
