Foreclosure was a term that many people had never heard of before the last economic crisis. Today, most people know what a foreclosure is and many have experienced it themselves. A foreclosure happens when you are no longer able to make your mortgage payments and the lender takes back your home. You will be required to move out and you will lose any equity that you have already put into your home. The lender will then sell the home to someone else in the hope of recovering their money. Most foreclosed homes usually sell for a lot cheaper than market value. Learn more about Texas foreclosure laws.
When you default on your mortgage payments for several months you will receive several notices. The first one tells you that you have the right to catch up with the payments. You may receive a notice telling you that you have the right to change the way you pay your mortgage. This is a chance for you to go in and negotiate a new deal that you can afford. The last of several notices is a foreclosure notice that tells you the day the lender will foreclose. You are supposed to be out before or on that day.
Can you stop foreclosure?
This is one of the most commonly asked questions when it comes to foreclosure – no one wants to lose their home and they will do whatever it takes to save it from foreclosure. There are some things that you can do.
• The easiest way to stop a foreclosure is to file for bankruptcy. Te moment you file an automatic stay comes into play which means that your lender cannot foreclose on your home anymore. They may file a motion for relief from the stay but this takes some time – you get a couple of months at least during which you can find some money and save your home.
• There are some lenders that are very reasonable so long as you have been prompt with your mortgage payments in the past. You can approach them and ask them to adjust the way you pay your mortgage so that your home is not foreclosed. Come up with a reasonable payment that suits both you and the lender.
• You can file a lawsuit with a bankruptcy attorney in Houston to stop foreclosure proceedings but this only works if the foreclosure is completely out of the courts. This, however, will cost money which can go towards your mortgage.
Talk to your lawyer to find out the best way to stop foreclosure – they can help you keep your home.