The thought of losing your home is stressful for anyone. Falling behind on your mortgage payments is easy to do with today’s financial climate.
Unfortunately, Texas makes it easy for lenders to start foreclosure proceedings on borrowers who have defaulted on their home loans. Lenders can send out default notices 20 days after a payment is past due, and a notice of sale can soon follow.
In theory, a homeowner in Texas could see their home foreclosed on within 60 days of default. That’s why it’s essential to contact an expert Waco, Texas bankruptcy attorney for help.
If you have fallen behind on your payments, it’s important to learn how to stop a foreclosure in Texas.
Contact Your Mortgage Lender
Start by contacting your mortgage lender to see if there is a way to work out a payment plan that will get you back on track. Some lenders are easier to work with than others, especially in situations where you lost your job.
You can try to ask for a forbearance, which is where payments are suspended or lowered for a short period of time. After the period is up, you may be required to pay more than the regular amount to pay back the forbearance amount.
You can also inquire about a loan modification, depending on the terms of the agreement.
Get a Loan Modification or Refinance
See about getting the loan modified or approval for refinancing. Some lenders are generous in trying to work with struggling homeowners.
They will look at your debt-to-income ratio, and some may even be willing to overlook bad credit marks created by past-due mortgage payments in order to help you refinance your home rather than lose it.
Speak with a HUD Representative
HUD is the Department of Housing and Urban Development, and they may be able to help in several ways. First, they may be able to talk to your lender and see about working out a payment plan that can help you get back on track. They also can provide counseling to assist with coming up with a payment plan to help you keep your home.
Sell the Home in a Short Sale
Another option to consider is a short sale that will help you sell your home quickly without risking a foreclosure on your record. Short sales can sometimes take place in as quick as two weeks.
Can Bankruptcy Stop Foreclosure?
You may be able to stop the foreclosure through Chapter 13 bankruptcy status. This is often the last resort for people who don’t have a forbearance agreement and/or a loan modification has been denied. While bankruptcy is not the best answer, it is one way to stop a foreclosure sale from happening. Chapter 13 filings allow for an automatic stay and will stop the foreclosure once the lender has been notified.
Filing for Chapter 13 bankruptcy protection is a process you need to discuss with a skilled Waco bankruptcy attorney. At the Law Office of Simer & Tetens, we have years of experience helping Texas clients with their bankruptcy needs. We understand how this process works and can help propose a Chapter 13 plan for you to catch up on the late payments over a set amount of time.