House foreclosure in Fort Worth, TX, is commonplace but avoidable. The fear that comes with potentially losing your home because of late mortgage payments can be overwhelming.
With the current downturn in the US economy, your expenses can quickly overshadow your income. With many family expenses to handle, defaulting on your mortgage payment is possible and puts you at the risk of foreclosure.
During a foreclosure, the moneylender will take over your home. If the property is worth less than you owe, you may end up with a deficit payment. A situation where you still owe the moneylender even after losing your home is termed deficiency judgment.
Beyond losing your home, deficiency judgment and foreclosure can both hurt your credit score. A bad credit score makes it harder to secure credit finances in the future.
If you aren’t in the law business, you most likely don’t know how to avoid foreclosure in Texas. However, the information we detail in this article will help you navigate these murky legal waters. Here, we’ll highlight all you need to know about avoiding a foreclosure on Fort Worth homes.
But first, you need to understand the laws and how to tailor them to your situation adequately.
Texas Foreclosure Laws
Texas Law stipulated a lender using a quasi-judicial proceeding to foreclose on home equity loans. During the quasi-judicial proceedings, a lender needs court approval before taking action on a non-judicial foreclosure. Texas law doesn’t allow deficiency judgments after foreclosure on home equity loans.
Foreclosing on townhomes is the legal process in which a lender works to take over your mortgaged property due to default in loan repayments. The trigger on the foreclosure laws activates when you are past the due date for repayments. You can also trigger foreclosure laws in Texas when you don’t meet up with other conditions of the mortgage agreement.
Are Texas Foreclosure Laws the Same As Other States?
Texas foreclosure laws differ from that of other states, but the tenet is the same. Defaulting a single mortgage payment doesn’t necessarily bring the lender down to your door to claim your property. In the case of the first default, you’ll get a notice. When you default a second time, you’ll get a demand letter.
Depending on the lender, there may be a chance for discussions after getting a demand letter. Ninety days after your initial payment default, you’ll get a default notice. Beyond the 90 days, your loan file will land in the foreclosure department. Once foreclosure processing starts, time is ticking.
Once the foreclosure department is aware of your mortgage default, you have another 90 days, called the reinstatement period. Foreclosing on a house in Fort Worth, TX, takes about 18 months.
Eighteen months may seem like ample time to redeem your mortgage payments. However, if the 18-month period elapses, your only option may be house-selling.
Real Estate Foreclosure Process in Texas
Here’s the process for house foreclosure in Fort Worth, TX.
Defaulting Mortgage Payments
Defaulting is the pre-foreclosure phase when you begin to get calls and letters. Ensure you don’t ignore the calls and letters reminding you to catch up on payment. On a call with the lender, you may be able to work out alternative payment options.
The alternatives to foreclosure after defaulting mortgage payments include:
- Loan modification
- Forbearance
- Alternate payment plan
- Short sale.
Short sales are one of the best ways to sell a house fast.
Notice of Default
Post payment default, Texas foreclosure law requires the lender to send you a letter stating that you haven’t paid. A notice of default is a part of the pre-foreclosure phase. After a notice of default, you’ll get another 20 days of grace.
Notice of Sale
A notice of sale letter comes in at least 21 days before foreclosure occurs. There’ll also be a copy of the notice at the courthouse and in foreclosure listings. The notice of sale document contains relevant information about the transaction — date, location, and time.
Real estate agents and buyers frequently check new listings to ready their purses. When a property has their interest, the buyers will ready an offer based on:
- Lot size
- Location in Fort Worth, Texas
- Property type
- Cost
TX Foreclosures Sale
The sale is the last stage of the foreclosure process in Texas. Foreclosure auction sales take place on each month’s first Tuesday. The sale goes on from 10 am to 4 pm at the open house.
If there will be any delay in house selling, it can’t be for more than 3 hours. The highest bidder at these sheriff sales gets the deed to the property.
Can You Avoid Foreclosure in Fort Worth?
From the pre-foreclosure phase through the foreclosure process in Fort Worth, Texas, everything can happen fast. The foreclosure system in Fort Worth is efficient.
Irrespective of how stringent the system is, avoiding foreclosure is possible. It would help if you had an expert lawyer who has experience avoiding foreclosure in Texas.
With an expert lawyer, you can explore alternatives like selling a house to avoid foreclosure or remortgaging. Whichever alternative to avoiding foreclosure you choose, make sure you’re doing it with legal assistance.
How to Avoid Real Estate Foreclosures in Fort Worth
Here are the best options to prevent foreclosure in Fort Worth, TX.
Remortgage Your Texas Home
Remortgaging means placing your current mortgage in a new contract. It’s a common hack for homeowners in search of how to avoid foreclosure in Fort Worth. The remortgaging process can occur between you and your current lender or with a new one.
To achieve a new mortgage contract, you don’t need to move houses. However, you do need the advice and negotiation skills of a lawyer.
Remortgaging your home may cost more in the long run. Due to the potential long-term cost, it should be the last option you consider.
Consider a Short Sale of Your Fort Worth Real Estate
Short sales are situations when you put up a home for sale at a price less than what your mortgage is due. During short sales, to avoid foreclosure, the buyer shouldn’t be the lender. Instead, the homeowner needs to sell to companies that buy houses in Fort Worth.
Following a short sale, proceeds will move directly to your lender. After the lender receives the proceeds, one of two things can happen. The lender can decide to forgive the rest of a loan or pursue deficiency judgments.
Selling to a Cash Home Buyer Before Fort Worth Foreclosures
To get the most value for your property, cash home buyers are the best. They have the money readily available. Selling to a cash home buyer eliminates the need for a waiting period. As a resident of Fort Worth, you can reach out to nearby cash home buyers in Granbury, as well as the following areas:
- Arlington
- Haltom City
- Dallas
- River trails
- Meadowbrook
- North Richland
- Ridglea
- Haslet
- Lake Worth
- Saginaw
- Azle
- Benbrook
- Burleson
- South Hills
- North Richland Hills
- Southlake
- Watauga
- Euless
- Downtown Fort Worth
- Any other town in Tarrant County.
The benefits of selling your house to a cash home buyer include selling when you want and paying no extra fees to a broker. You can quickly get rid of a house that’s causing problems.
Companies Who Buy Houses Fast in Fort Worth
Companies that buy houses fast in Fort Worth are an easy way out of late mortgage payments. To avoid contract issues, involve a lawyer when selling to a fast home buyer.
Finding a home buyer to avoid house foreclosure in Fort Worth, TX, is easy. A quick Google search can offer a list of companies who take an interest in homes for sale.
You can’t trust every cash home buyers you find. However, with due diligence, you’ll find a suitable company to sell your house to (for cash) and at a fair price. These companies will help you avoid the stress of dealing with repairs and realtors.
Examples of companies that buy houses fast in Fort Worth include Nextera Home Buyers, Southern Hills Home Buyers, and Four19 Properties. At Four19 Properties, we buy houses in Texas while offering you the best value for your property.
Final Thoughts
House foreclosure in Fort Worth, TX, is a long process. The pressure to avoid it starts during pre-foreclosure and can trickle down to eventual foreclosure if you don’t have an expert on your side. With the right lawyer on your side and a reliable company that buys houses fast, you can avoid foreclosure. Good luck!