If you have been served a notice of default by your lender, this means that you have fallen seriously behind on your mortgage repayments. If action is not taken to address this, the end result will be foreclosure, which is the selling of your home by the lender in order to pay off the mortgage.
In order to reinstate the mortgage after you receive a notice of default, you must pay the specified amount on the notice. It can be possible to contest the foreclosure in certain circumstances. In doing so, you will have more time to work on a solution to your financial issues.
Disputing the accuracy of the notice of default
If you believe that details within the notice of default were inaccurate, you can contest the foreclosure based on this. All administrative details must be accurate before a court can pass a foreclosure order.
Preventing a foreclosure through other means
In addition to contesting a foreclosure, you can delay action and potentially put a stop to foreclosure through other means. If you are unable to pay the specified amount to reinstate the mortgage within the redemption period, you may want to consider filing for bankruptcy. Filing for bankruptcy usually leads to an automatic stay, which means that creditors can no longer take action to proceed with debt collection efforts, including foreclosure.
If you a struggling to prevent foreclosure on your property, it is important that you take the time to understand how the law works in Texas. There are many possible ways to avoid foreclosure, but the best solution will depend on your individual situation.