Avoid Foreclosure
Avoid foreclosure by bringing your loan current. That doesn’t mean you have to pay off your entire mortgage, just all the late payments you owe. If you can bring it to that point, the pre-foreclosure process stops, and you return to a state of simply paying your mortgage regularly.
Foreclosure is when the bank or mortgage lender takes possession of property that is in default, often against the homeowner’s will. Your mortgage agreement states that the bank can reclaim the property through foreclosure if you stop paying your loan.
“The amount of time you have between a notice of foreclosure and being forced to leave your home depends on where you live,” says a real estate expert and author, Michele Lerner. That window varies from just 30 days to 60 days, depending on the jurisdiction.
“If you live in one of the 22 states that have ‘judicial’ foreclosure, which requires a court to determine whether the foreclosure is legitimate, this can slow down the process a little longer than in states with ‘nonjudicial’ foreclosure, which doesn’t require a court procedure,” she adds.
In Texas, a foreclosure can be judicial (by court order) or non-judicial (without court order). Most foreclosures in Texas are non-judicial. These foreclosures are sold “at the courthouse steps” which translates to the county courthouse or other designated place in the county in which the property is located (see Texas Property Code Section 51.002(a) and (h)). Foreclosure sales take place on the first Tuesday of the month and must be sold between 10:00 am and 4:00 pm local time and not later than 3 hours after the time of sale stated in the notice of sale provided to the borrower.
If you’re struggling to make mortgage payments, you need to swallow your fears and call your lender immediately. It may be possible to avoid foreclosure and save your home through a forbearance or loan modification.
Short sale
If you don’t foresee ever being able to make your mortgage payments—even with a loan modification—one final option to avoid foreclosure is to ask your lender for permission to hire a real estate agent for a short sale. If your lender agrees, you will have to sell your home, and the proceeds from the sale will go to the bank to satisfy your loan. You will lose your home, but you will walk away without a foreclosure on your record.
Will a Foreclosure Hurt My Credit?
Unfortunately, a foreclosure remains on your credit record with all three nationwide credit bureaus for seven years. A foreclosure is a severely negative credit event, knocking off 100 points or more from your credit score, according to FICO.
The missed payments before the foreclosure will also have a damaging effect on your credit. Because missed payments top the list of negative events, your credit score will suffer before the foreclosure process even begins.
Other Ways a Foreclosure May Hurt You
Home foreclosure can negatively affect the health and mental health of the family living in the home. The stress of personally experiencing foreclosure was associated with worsened mental health and adverse health behaviors. After spending years living in a house, making it a home plus making friends with neighbors then losing your home to foreclosure will hurt everyone involved. Some married couples may divorce and families may break apart after the stress of losing a home to foreclosure. It could be helpful to seek counseling during and after the stressful event of a foreclosure.
Homeowners over age 50 who fell behind on their mortgages between 2006 and 2008 were much more likely to report symptoms of major depression, according to a new study written by several Foundation-supported scholars. Mortgage-delinquent homeowners were also more likely to lack a sufficient food supply in their pantries and to go without prescribed medications for financial reasons.
“This is reflecting the juggling that people are doing to make mortgage payments,” says Dawn Alley, Ph.D., an alumna of the RWJF Health & Society Scholars program (2006-2008) and the lead author of the paper, which was published online on Oct. 20 by the American Journal of Public Health. “These short-term changes are likely to have long-term health consequences for families facing foreclosure.”
Avoid Foreclosure by Selling Your House
Listing your house with a Real Estate Agent can cost you time that you no longer have. When you contact an Agent, it could take several months before you find a buyer. You may have the expense of completing repairs and paying fees and closing costs which is money you don’t have. You will need to sell quickly to avoid foreclosure. You can’t catch up on your payments with the mortgage lender and you have no other choice but to look for another solution.
That’s where I come in. I understand your situation and I want to help. Contact me and let’s talk. Contact me only if you need to sell your house quickly! I buy houses “as is” and at no repair costs or other fees to you. I can put cash into your pocket so that you can have a new start. Once a house goes into foreclosure, I will not be able to make you an offer. Once a house goes into foreclosure, you may be unable to rent because of bad credit or have the cash to move out and rent another place. Avoid foreclosure and let us help.