Your Rights During a Foreclosure in Texas
Are you staring down the barrel of a foreclosure? Foreclosure is certainly the last thing that any homeowner wants to go through, but that doesn’t mean you should give up now. The foreclosure process in Texas is complicated and understanding the steps involved as well as your rights can save you a lot of stress.
What is Foreclosure?
Even though foreclosure is convoluted, at its core it’s a relatively simple concept. Foreclosure is the process that a lender or mortgage holder initiates in order to reclaim possession of their property when a borrower misses payments. In Texas, the majority of foreclosures on residential properties are categorized as “non-judicial”, meaning that the lender is able to foreclose without getting the courts involved. This also has some other implications which we will touch on later.
The Foreclosure Process
Foreclosure begins to loom as soon as a mortgage payment is missed. On the first missed payment, most loans allow a ten to fifteen day grace period, after which the mortgage servicer will apply a late fee. Once a few more payments are missed you will start to be bombarded by letters and calls imploring you to pay up. Even though you must be at least 120 days delinquent on payments before an official breach letter is sent out, this is basically your last best chance to try and make things right. Instead of burying your head in the sand it’s a great idea to discuss loss mitigation options with the mortgage servicer.
Once you receive your breach letter, things start to get bleak. The breach letter’s purpose is to inform you that you are in default, the amount you must pay to cure the default, and warn you that if you don’t cure the default the lender can request the entire balance of the loan or choose to sell the property.
After about 30 days since the reception of the breach letter, the foreclosure process will begin. A notice of sale will be sent to all borrowers, as well as posted at the county courthouse door and filed with the county clerk. Soon after the actual foreclosure sale will occur at the county courthouse. Following the sale, the lender may file a lawsuit to obtain what is a called a deficiency judgment. In essence, the lender seeks to recover from you the difference between the total debt owed and the actual amount that the home sells for at the foreclosure sale.
There is no redemption period after the foreclosure sale in Texas. That is, you are unable to reclaim the property by paying off the total debt after it has been sold. Following the foreclosure sale the new owner of the property will either offer you cash to move out or take the necessary actions to evict you with a lawsuit that the sheriff will serve.
Don’t let it come to this. If you’re struggling to make mortgage payments on your home contact We Buy Ugly Houses Dallas. We buy homes as-is and make cash offers. We help desperate owners facing foreclosure keep their dignity and avoid the hassle of foreclosure. Get your free quote from We Buy Ugly Houses Dallas today.