What Happens When a Foreclosure Is Postponed in Texas?
If you don't pay your mortgage, your bank can send you a foreclosure notice and subsequently repossess and sell your property. Texas banks sometimes postpone foreclosure for a variety of reasons. However, if the bank suspends foreclosure proceedings, it does not necessarily mean you are safe from foreclosure. Your lender can reinstate proceedings at any time without giving you a new notice.
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No Required Notice
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Texas doesn't have any laws requiring the bank to provide you with additional notices after a sale is postponed. Thus, your lender doesn't have to notify you of the new sale date before reselling your home. For this reason, it's best to move out prior to the original sale date if possible so you don't risk being notified that your home has been sold before you are prepared to move.
Reasons For Postponement
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The bank will sometimes postpone a sale because it believes it is close to negotiating a settlement with you. It may also postpone the sale because of bankruptcy or loan modification or because it is considering a short sale on the home. If negotiations fall through, the lender can immediately foreclose on your home. Thus, once the lender postpones the foreclosure, you must keep the lines of communication open rather than waiting for the lender to do something.
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Risk
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If you are attempting to apply for a loan modification or approval for a short sale, you are taking a risk. The department that handles foreclosures may not be the same department that handles your attempt to resolve the problem. Thus, even if your foreclosure is postponed, the foreclosure department might not be aware that you are about to get a loan modification and may foreclose on the home at any time. Send copies of notices regarding loan modification or short sale to the foreclosure department to try to reduce this possibility.
What to Do
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If your bank suspends foreclosure proceedings for any reason, contact the bank immediately to find out what's going on. If the bank can't give you a definite answer on whether it is going to proceed with the foreclosure, call back every few days to see whether you can get an update. In the meantime, work on getting out of your home so that you won't be hit with a nasty surprise when the bank does decide to foreclose on your home.
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