How to Stop Foreclosure at the Last Minute in Fort Worth

A foreclosure notice

Losing your home can be stressful, but professionals familiar with the inner workings of this foreclosure can help guide you to the most desirable outcome. In Forth Worth, if you find yourself in a situation where you could potentially lose your home to foreclosure, don’t hesitate. You do have options.

Make yourself aware of the many opportunities available to you to avoid foreclosing, or seek the advice of an experienced foreclosure attorney. If you decide to sell your home to avoid foreclosure, a real estate professional would be the one to contact. If your lender is willing to work with you, provide the information they need to help you reach a favorable resolution.

The Fort Worth Foreclosure Process

In Texas, most foreclosures are nonjudicial, meaning lenders are not required to file civil lawsuits to proceed. They must, however, possess a deed that includes a power of sale clause, which grants them the authority to sell the home without additional consent.

Once you’ve become more than 120 days past due on your loan, your mortgage servicer is required to send you a notice of default and an intent to accelerate letter through certified mail. This letter gives you 20 days from the time of receipt to cure your loan before they can proceed with a foreclosure.

If you don’t attempt to cure your loan or stay in close contact with them, on day 21, the mortgage servicer typically sends a certified notice of sale to all borrowers on the loan. This letter will be posted at the county courthouse and filed with the county clerk. They will then sell the property to the highest bidder on the posted foreclosure date.

Can You Sell a House in Foreclosure in Fort Worth

A house in foreclosure for sale

When you find yourself in a position where you’re unable to make your mortgage payments, and you’ve exhausted all other options, there are alternative ways to sell a house. A short sale would require finding a buyer willing to pay an amount your mortgage lender is willing to accept.

If your property is in foreclosure, but you still have time before investigating state mediation requirements for your loan, selling your home may be a valid option. You could seek the help of a realtor, or try selling your house without a realtor. Offering your home For Sale By Owner is one option, but it would require more legwork and knowledge on your part.

Which Documents Do You Need To Save A House from Foreclosure

In order to save a home from foreclosure in Fort Worth, there are circumstances under which you could show your specific hardship to create a plan with your lender or other available options. In most cases, you’ll be asked for two of your most recent pay stubs, showing your monthly income, which could include Social Security, Disability, unemployment compensation, or Veteran financial benefits.

You’ll also be asked for two months of your most recent bank statements, your tax return and W2s for the previous year, and a Hardship Letter you’ve written explaining what caused you to become late with your loan payments. Sometimes, the lender will ask you to create a budget, laying out all your monthly expenses.

Can You Save a House from Foreclosure at the Last Minute

If you’re wondering how to stop foreclosure at the last minute, there are several options available, some of which are affected by state law. Each situation is unique, and you should not take them lightly, but there are ways to stop your lender from foreclosing. Saving your house from a foreclosure can be done up until the last minute, although you’ll want to look into your options with your mortgage company, or an attorney, as soon as you’re made aware with a notice of default.

File Bankruptcy

Although there tends to be a stigma attached to filing bankruptcy, the recovery time for a homeowner after filing Chapter 13 bankruptcy has changed in more recent years. It will still affect your credit score, but with the right bankruptcy attorney, you’ll be on a path to recovery faster than you would have otherwise, and you’ll have an automatic stay to put a stop to a foreclosure action immediately. You would arrange to pay your debts over a 3-5 year period.

With a Chapter 7 bankruptcy, the bank liquidates your debts, and payments would typically not follow. The bankruptcy process can be lengthy, and these two types of bankruptcy may be your last resort due to the lasting effects, but it’s something to truly consider if you’re just days away from losing your home. With proper legal advice to help you navigate the court system, last-minute strategies such as these may save you from larger headaches.

Request a Loan Modification From the Lender

If your mortgage payments are severely behind, you may want to discuss a loan modification with your lender. The terms and conditions of your loan will be modified when you work closely with your lender to avoid a foreclosure sale of your home. Your monthly payments will be restructured with a new payment plan, making payments easier to handle with lower interest rates to get you back on track when a traditional refinance is not an option.

There are laws in place to protect you from dual tracking; therefore, a mortgage company cannot seek foreclosure while they’re simultaneously working with you toward a modification of your loan. Should you find yourself in a situation where you suspect this is occurring, you should seek help from an attorney.

Ask About Forbearance Options

There are certain circumstances under which a lender may consider putting a borrower’s loan into a forbearance, with the option of a repayment plan and a signed promissory note. To stop foreclosure proceedings, work with your lender to have some of the payments you have not been making put on the back of the mortgage to get you through the difficult time and attempt to bring you up to date on your loan.

A Deed in Lieu of Foreclosure May Be Available

If the other options are not working for you and you’ve attempted to file a loss mitigation application with your lender without success, you may be able to deed your home back to the mortgage lender before a foreclosure action is completed. With the help of a foreclosure attorney, your home could be signed over to your mortgage company, relieving you of your mortgage debt obligation in some cases and stopping a foreclosure auction.

Investigate Whether a Short Sale Is an Option

Another option for you could be a short sale with cash home buyers in Fort Worth, ideally with the help of a real estate agent. In some cases, a buyer will come in with a cash offer, which could mean a fast sale to relieve you of your obligation, allowing you to move on. Cash buyers are out there, and if you’ve missed payments, you may want to go this route. If you can demonstrate financial hardship, we buy houses Arlington lists in a short sale, and any outstanding debts will wash away.

Conclusion 

Foreclosures can be overwhelming to deal with, but professionals are there to help you navigate the circumstances surrounding them. As a homeowner facing foreclosure, you may be looking to sell a house fast in Texas. To do so, you’ll want to become familiar with the consumer bill of rights in your state, learn the steps to a sale, and familiarize yourself with all potential options available to you to avoid the completion of stressful foreclosure proceedings. There are options to stop foreclosure at the last minute.

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