If you have not been meeting your mortgage payment obligations for a significant period of time, you’ll likely be facing foreclosure proceedings. Foreclosure is never a good situation to be in because it will lead you to lose your home, and you’ll potentially lose any money that you invested in paying off the mortgage.
In Texas, there are two ways of going through foreclosure; foreclosure by judicial sale and foreclosure by power of sale. Foreclosure by power of sale is generally considered the more convenient option. Because this type of foreclosure involves the sale of the property by the mortgage holder without the supervision of the court, this is the simpler type of foreclosure.
However, not everyone will be able to foreclose by power of sale. Although Texas state law allows this form of foreclosure, the terms of your mortgage must also allow for it. In addition, a deed of trust is required, and the trustee may conduct the sale of the mortgaged property rather than the mortgage holder.
If possible, you may want to take steps to try to avoid foreclosure completely. There are ways that you can do this as long as you take action as soon as possible. You may be able to avoid foreclosure by engaging in a short sale or filing for bankruptcy.
If you are facing foreclosure and you are not sure of the most beneficial action that you can take, it’s important that you understand the law in Texas and how it applies to you. An experienced attorney can provide valuable information and guidance.