Few situations are as stressful as the threat of foreclosure. If you are facing the possibility of having your home taken away, here are five things to think about:
1. The Foreclosure Process Moves Fast
In Texas, a foreclosure can be completed in a matter of months. There are two types of foreclosure: judicial and nonjudicial. In a judicial foreclosure, a lawsuit is filed to get a court order to foreclose. In a nonjudicial foreclosure, a power of sale clause in the mortgage allows the lender to move forward without court intervention. Most foreclosures are nonjudicial.
If you have received a letter of demand from your lender, you must take action now. If you are behind on your payments and foresee the threat of foreclosure, you do not have to wait until you receive an official notice to take action.
2. Lenders Lose On Foreclosures Too
It is worthwhile to consider the situation from the other perspective. Lenders do not want to foreclose on houses. Foreclosing costs them money. They would much rather have homeowners simply make their monthly payments. They foreclose when they do not believe that is going to happen. They may be amenable to alternatives, but working with these big companies can be challenging, particularly for the uninitiated.
3. Can You Afford Your Home?
You might be able to stop foreclosure for now, but if your income does not allow you to make your mortgage payments you may end up in the same situation again. It is important that you seek a long-term solution. You may be able to modify your loan, depending on your situation, so that payments are workable for you. One of the toughest things to think about is parting with your home, but it is important to be realistic and consider all your options. However, if you are considering a short sale or a similar alternative to foreclosure, you must be careful of getting a deficiency judgment.
4. Beware Of Promises That Are Too Good To Be True
There are many predators out there disguised as helpers. There are entire government task forces devoted to finding, arresting and prosecuting people who are offering fraudulent loan modification services. Furthermore, just because a service is operating within the bounds of the law does not mean that it is effective. Many of these services have no leverage or legal power to obtain the loan modifications they promise. Be wary of any service that makes promises that sound too good to be true.
5. Foreclosure Can Be Fought
You may be surprised at the options you have available for stopping foreclosure. You just need someone with the experience and knowledge to help you find them.
I am attorney Matthew Obermeier. I have helped many homeowners throughout Texas prevent foreclosure through a variety of strategies and powerful legal interventions. I know how to work with lenders in order to obtain loan modifications. When appropriate, I can pursue a temporary restraining order (TRO), or use another method of foreclosure defense. If it makes sense, I can also help you get rid of a house you cannot afford through traditional sale, short sale, deed-in-lieu of foreclosure, or other means.
I offer free consultations about foreclosure prevention options.