Overdue payments are one reason why a lender might pursue foreclosure options. In Texas, that process may be even streamlined. Specifically, Texas is one of 29 states that allow foreclosure by the power of sale. That means that the court does not have to be involved, as is typically the case in a foreclosure by judicial sale.
Yet not every type of mortgage involves monthly payments. A reverse mortgage is a type of equity loan against real estate, where a homeowner makes a down payment to purchase the home. The remaining balance is somewhat like a lump sum loan.
Unfortunately, reverse mortgage holders may be under a false sense of security. Even though they are not making monthly payments, a lender may still have the legal right to foreclose for unpaid expenses, like homeowners’ insurance premiums or association fees.
Fortunately, even a non-judicial foreclosure proceeding involves some procedural requirements that serve to protect a homeowner. If you have received notice from a lender about a proposed foreclosure, don’t delay in consulting with a lawyer who focuses on real estate law. Our law firm provides a host of services to our clients.
To prevent a foreclosure, there may be options available such as loan modifications or even a renegotiated payment plan. In addition, an attorney might be able to forestall an impending foreclosure through a temporary restraining order against the lender. As a practical matter, a lender may find the path of least resistance to be working with an attorney. Our law firm provides strong advocacy to our clients, helping them to achieve the best outcomes under the circumstances.
Source: Wall Street Journal, “A Reverse Mortgage to Buy a Home? Here’s How,” Anya Martin, July 20, 2016