Austin Texas – When meeting with clients to discuss how they can avoid foreclosure, inevitably 5 questions will always come up at some point. These are by far the 5 most common asked questions regarding foreclosure I hear in almost every bank short sale case I work. These 5 frequently asked questions (FAQ) regarding foreclosure are the following:
Q. How many payments do I need to miss before I lose my home to foreclosure?
A. After one missed payment on your mortgage, you are in breach of your agreement with your lender/servicer. Although most lenders/servicers do not start foreclosure proceedings after only one missed mortgage payment, late charges apply and over time can add up. If you continue to miss your payments, it will make it harder for you to catch up. Many/most lenders/servicers will start the foreclosure process after you are two to three payments behind (in Texas).
Q. How long will the foreclosure process take?
A. Texas foreclosures are carried out both in court and out of court. Compared to many states, it is extremely easy to foreclose on properties in Texas and the process moves rather quickly. The entire non-judicial foreclosure process can take as little as 60 days in Texas. Most experts consider Texas the easiest and fastest state when it comes to foreclosure.
Q. Is there a right of redemption in Texas?
A. Texas has no statutory right of redemption, which would allow a party whose property has been foreclosed to reclaim that property by making payment in full of the sum of the unpaid loan plus costs.
Q. Are deficiency judgments permitted in Texas?
A. Yes. A deficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. In Texas, the lender may obtain a deficiency judgment after a non-judicial or judicial foreclosure. (Tex. Prop. Code §51.003, §51.004).
Q. Is there a deadline for the lender to obtain a deficiency judgment in Texas?
A. For non-judicial foreclosures, the lender must file a lawsuit to obtain the deficiency judgment within two years after the foreclosure sale (Tex. Prop. Code §51.003).
In Texas, foreclosure is a legal process where a mortgage company or bank takes back your home to satisfy your mortgage loan. When you fail to make your mortgage payments (whether it is your first mortgage, second mortgage, and/or a home equity line of credit) this can result in foreclosure. Foreclosure can also be due to non-payment of real estate property taxes and/or HOA dues. Texas is a non-judicial foreclosure state. This means in most cases, banks and mortgage companies do not need court permission in order to foreclose. Whenever an individual defaults on his/her mortgage, the bank only needs to follow the requirements of the Texas Property Code.
The good news is there is absolutely no reason for you to lose your home to foreclosure. You have many alternatives: 1. Short Sale 2. Reinstatement 3. Forbearance 4. Mortgage Modification 5. Rent the Property 6. Deed-in-Lieu of Foreclosure 7. Bankruptcy 8. Refinance 9. Service Members Civil Relief Act 10. Sell the Property. And the U.S. government does not want you to be foreclosed on either. So much so that the U.S. Treasury Department started a cash incentive program in 2009, also known as HAFA (Home Affordable Foreclosure Alternatives) that provides an approximately $3,000 cash incentive to the short selling borrower/seller upon the successful completion of their short sale. The government rolled this incentive program out in 2009 because about 70% of homeowners that would/could qualify to do a Short Sale don’t even try (they just let their home go to foreclosure and destroy their credit when doing that was completely unnecessary). So if you have missed a mortgage payment(s) or are about to miss your first mortgage payment; call a real estate agent that specializes in Short Sale. Don’t wait; you have a very limited amount of time to act (especially if you live in Texas).
Thinking about doing a Bank Short Sale to avoid Foreclosure?
I can help you short sale your property and get back on your feet. Send me an e-mail at GeorgeKiefer@gmail.com and I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me direct at (512) 970-0709 cell/text.
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