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Texas' swift foreclosure process puts struggling homeowners in a bind

By
Mortgage and Lending with NMLS# 335055 335055

http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-foreclosures_10bus.ART.State.Edition2.4a3780e.html

WASHINGTON – Even as banks streamline programs to renegotiate troubled mortgages, efforts to help Texas homeowners are being hindered by the state's fast-track foreclosure process, according to housing counselors and government officials.

 

Photos by COURTNEY PERRY/DMN
Photos by COURTNEY PERRY/DMN
Forrest Brannon, 78, of Dallas got behind on his mortgage after having to spend more on health care and seeing the interest rate on his adjustable-rate mortgage spike. He recently got a notice of impending foreclosure on his home.

In other states, foreclosure can take as long as four months, giving the borrower more time to negotiate a better loan or catch up with missed payments. But in Texas, the process starts sooner and may take as little as 41 days to complete – the quickest in the country, according to a 2006 study by the Texas Department of Housing and Community Affairs. 

"The biggest obstacle we have in Texas is we are a very fast foreclosure process state," said Linda Davis-Demas, assistant housing director for the Consumer Credit Counseling Service of Greater Dallas, which works with borrowers. "We are always up against the gun in regards to that."

 

 

 

http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-foreclosures_10bus.ART.State.Edition2.4a3780e.html

 

FORECLOSURE PROCESS TOO SHORT, AG SAYS

AUSTIN (Dallas Morning News) – Texas' swift foreclosure process does nothing to help beleaguered homeowners, but that could change during the upcoming legislative session.

State Attorney General Greg Abbott plans to push the Texas Legislature to lengthen the time homeowners have to fix a default, from 20 to 45 days.

Under state law, a homeowner who doesn't catch up on payments after receiving the 20-day notice can lose his or her home.

In other states, foreclosure can take as long as four months, giving the borrower more time to negotiate a better loan or catch up with missed payments. But in Texas, the process starts sooner and may take as little as 41 days to complete — the quickest in the country, according to a 2006 study by the Texas Department of Housing and Community Affairs.

 

Texas Realtors: This looks like a great opportunity for these people to list their properties before foreclosure!!! 
I would think that a smart Realtor would try an capitalize on this. 

And I certainly expect a bunch of you to be contacting your Texas State Representatives.

Tom Burris
DallasLoanGuy.com

Dallas, TX

"Your Dallas Mortgage Consultant"

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I write about Texas Home Loans , live in the Dallas, TX area and lend across the entire Great State of Texas!! Subscribe to My Blog and stay informed about current lending changes!!

 

While I personally focus on Texas Home Loans and First Time Home Buyers.... I do lend in other areas.

 

 

 

Comments (7)

Scott Geary
Infinity Home Mortgage Company Inc - Allentown, PA
Your Pennsylvania Mortgage Source

Good lord I am glad to be in PA! Speediest 4clsr's, highest execution's. WOW. What a rough state. Love Linda Davis Demis comment "We are always up against the gun in regards to that." Spoken like a true Texan!

Dec 12, 2008 08:22 AM
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

On the flip side, if the process took longer and you have people in the homes who truly can't afford the home or the upkeep, the houses get in worse and worse shape by the time the foreclosure can go through, and then it's harder to sell on the other end. 

Swift and fast sounds good to me... though I understand making it a longer process for people really trying to work things out.

Dec 12, 2008 08:25 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Tom... hey, it's my buddy....  and yes, 41 days...?? I thought it was standard in most states to be 4 months. I would agree in many cases though, once behind 2 months or so, it's very hard to catch up.. not unless you were getting a settlement or a bonus.

jeff belonger

Dec 12, 2008 10:34 AM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

I'm doing one with Wells Fargo right now and they have been incredible on their communication with me. I think they are tired of owning so many homes. It appraised 120K under what they paid in 2006 AND we have an offer on the table of 275K

Dec 12, 2008 10:52 AM
Anonymous
Deborah

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Dec 14, 2008 05:45 PM
#5
Angelia Garcia
Pure Realtors - Dallas, TX

Hi Tom,

I just attended a class this weekend and the instructor commented that the foreclosure process was going to be lengthened.  It was not going to be so quickly anymore.  At least that is what I thought I heard.  It was hard to stay awake. J/K.

Dec 16, 2008 12:17 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Good news for homeowners and good news for realtors who can do short sells.

Dec 16, 2008 12:31 PM
Floor Hut
Floor Hut -Plano/Frisco/Allen/McKinney - Plano, TX

wow, that is fast. Good info Tom. Hope your well. Been a while, hope all is well.

Feb 17, 2010 02:43 PM