Texas Foreclosure Prevention

It can be difficult to file for bankruptcy as it can be a life-changing event for the homeowners. If you foresee a foreclosure and the choice to declare bankruptcy seems daunting, the best thing you can do is to look for a Texas foreclosure prevention attorney. Many attorneys in Texas can help you with the legal process.

What to do for Texas foreclosure prevention?

You are declaring bankruptcy because you are in a dire financial situation, you do not have much money that you can pay to your debtors, so going for the legal help is the best choice. When you hire an attorney, it can save your money, and at the same time, you gain valuable legal guidance.

When foreclosures take place in Texas?

Foreclosures occur only on the first Tuesday of a given month in Texas. The foreclosure sale will happen even if it is a public holiday on this day. It is an auction sale where someone calls out the land and solicits bids. Before the process is started, the lender has to send the homeowner a letter, which gives him a time of at least twenty days to pay off the mortgage amount. When homeowners fail to pay this amount, the lenders send the notice of sale to them along with the scheduled date of sale.

What happens after foreclosure?

Once the bidding process is over, the successful bidder gives homeowners a time of three days to vacate the place. If homeowners fail to vacate the house, an eviction lawsuit is filed against them.

If you choose to stop the foreclosure in Texas, foreclosure attorneys will help you with either of the following:

Forbearance: Under a forbearance agreement, the lender stops the foreclosure process with conditions where homeowners pay a reduced amount for a given period. The reason behind it can be a temporary decline in income or some uncontrollable financial crisis.

Loan modification: If the loan proposal is accepted, it will stop the foreclosure proceedings. The homeowner needs to apply for the loan modification at least ten days before the foreclosure sale.

Filing for Chapter 13: If your mortgage company doesn’t go ahead with forbearance or loan modification, homeowners can opt for chapter 13 bankruptcy. It means they will get an automatic stay that will stop foreclosure immediately.

These are some of the ways to stop foreclosure in Texas, but it is still the best to make timely payments.