Because Texas law uses the non-judicial method, lenders can foreclose pretty quickly, compared to other states. In Texas, lenders send out a notice of sale just 20 days after a payment is considered past its due date. In as little as 60 days, homeowners can lose their homes to foreclosure. In addition, Texas does not grant the right of redemption, meaning homeowners who lose their homes to foreclosure don’t have the option of buying their home back.
In case your payments are overdue and the foreclosure process is already underway, here is how to stop it:
1. Get in touch with the mortgage company. Contact the lender and negotiate a payment plan. If the reason you couldn’t pay on time is because you’re facing a temporary hardship like losing your job, the lender may consider suspending payments temporarily, also known as forbearance. In certain cases, some lenders can even decrease the interest rate for a certain period of time.
2. Getting home refinanced. Many lenders in Texas work out loans for homeowners currently in a rough patch. By referring to your debt-to-income ratio, it’s possible that they’ll disregard some of the bad credit created by late payments and get you refinanced.
3. One of the smartest moves when dealing with a foreclosure is to talk to someone from the Department of Housing and Urban Development, or a HUD representative. A HUD rep will analyze your situation and devise a payment plan and contact the lender to help get you out of foreclosure.
4. If you don’t want to tarnish your credit report with a foreclosure, you can consider selling the home. You can go for a short sale, which can last for as little as two weeks or a longer period, as long as your lender agrees. There’s a good chance many lenders will agree to a sale, as the majority of them just want to get their money.
5. Find a way to pay the money you owe. If you manage to pay all the money you owe – late mortgage payments along with all the interest and late fees, then the foreclosure process will stop.