You’re behind on your mortgage payments, you’re doing your best to make ends meet, but the bank keeps hasseling you. Then one day…BAM! You get a letter from your bank telling you about the pending foreclosure with the date they are planning to auction off your house. What do you do now?
You aren’t the first person to go through a foreclosure… and you won’t be the last. You are not alone. Don’t feel ashamed. We get it, things happen in life. Just know, there is help and you have options.
What is Foreclosure?
Foreclosure on a house happens when a person has a mortgage on their home but doesn’t make their payments. Essentially the bank that lent the money to buy it, repossesses of the property. Banks are not in the business of owning houses, so they auction the house to the highest bidder at the courthouse in order to recoup the money they lent for your home.
What is Pre-Forclosure?
Pre-foreclosure on a home is timeframe just before the house goes to auction. How long is pre-foreclosure? Here in Texas, the banks are required to file the foreclosure at least 21 days before the date of the auction (which is held on the first Tuesday of each month). The preforeclosure period is the time between when the bank files the paperwork and day of the auction. Although, some refer to it as pre-foreclosure as soon as the mortgage payments are 30, 60, or 90 days late.
How Does a Foreclosure Affect Me?
It is probably the worst thing that can happen to your credit. It will significantly drop your credit score, but will also appear as a red flag anytime you try to apply for credit of any kind. This doesn’t just mean credit cards and new houses. A foreclosure on your credit can keep you from even getting an apartment or a car. And it stays there for seven years!
Aside from your credit, the affects of foreclosure can be devastating to you and your family. You will lose your home. And not just lose it, you will be kicked out with no regard to what you’re going to do or where you’re going to go.
What Can I Do to Stop a Foreclosure in Texas?
Get in touch with us to get to speak with a foreclosure specialist and learn about all your options.
4 Common Ways to Stop Foreclosure
1 | Loan Modification (aka Loan Mod)
You can ask the bank to modify your current mortgage to add your past due amount and accompanying fees to the back end of your loan.
NOTE: This can sometimes make your payment higher and you have to be able to prove to the bank that your financial situation has changed.
2 | Sell to a Cash Buyer
Selling your house to a cash buyer can relieve the stress immediately. Cash buyers will close quickly, put cash in your pocket, stop the foreclosure and give you time to move. Click HERE to get a cash offer.
3 | List on the Market
If your home is in really good condition and the market is in your favor, this may be your best option. Click HERE to see about listing your house on the market.
4 | Bring the Payments Current
This may seem like a silly option since you are already behind on your payments. But if you have a lump sum of money coming your way or if you have a way to borrow money (and be able to pay it back) this may be your best option.
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