Why Foreclosure Happens
One of the worst things that can happen is having your home foreclosed. It can leave families displaced, homes unsold and unlived in for years, and it places financial burdens on multiple parties. Unfortunately, they are quite common. Foreclosures happen when a lender seizes property because a mortgagor, you, is unable to make mortgage payments for whatever reason. Typically, this happens when you have negative equity, meaning you owe more than your house is worth because of the amount of owed money and interest.
Many times, people are unable to make their mortgage payments because of unforeseen, difficult situations. These include unexpected deaths—mainly the head of the household—drug abuse, divorce, and major diseases and accidents. These things can eat up a lot of your money and leave you in situations where you are unable to work and earn wages. From there, the missed payments start and the cycle begins.
Understanding the Basics
When you purchase a home, you usually don’t have hundreds of thousands of dollars on hand to purchase the house—and that’s okay. This is where a lender comes in. Once you pay a down payment to secure your home, a lender will loan you the money needed to cover the rest and you’ll pay it back over many years. However, the lender usually makes the home collateral, so if you can’t pay, they can take the home from you to make up for it.
What Does the Foreclosure Process Look Like?
Foreclosure doesn’t happen right away. So if you miss a few payments, there’ll be some consequences, such as penalties and legal issues, but you usually aren’t going to lose your home the second you miss a due date. However, after multiple missed payments, you may be forced to leave your home. Typically, you start receiving notices as soon as you miss a payment. So if you miss a payment because your usual method of payment has defaulted, you can fix it right away. After about three months of missed payments, lenders will consider your loan in default. These notices will tell you as soon as a payment is missed and when the foreclosure process is starting.
Lenders in Texas have the option of taking the judicial and nonjudicial foreclosure routes. If they choose the judicial route, your lender will take everything to court and handle everything with legal action. This often takes longer, giving you more time to find a solution. If they choose to handle things outside of the court, they can go about it however way you both agreed to in your contract.
In Texas, lenders are required to wait at least 120 days before sending you a notice that they intend to foreclose. This period is known as the pre-foreclosure mitigation review. They are also required to send you a letter addressing the breach in payments and outlining what you can do to “cure” your default. Once the “cure” period is over, they will notify you about when they plan to sell.
Texas does not require a redemption period, meaning a lender doesn’t have to give you a period of time to reclaim the property. At that point, if the property is not reclaimed, you will be forced to vacate. If you do not vacate, you will be evicted.
The foreclosure process can be daunting, heartbreaking, and overall troubling. Money4Casa is here to help.
How We Can Help
At Money4Casa, we speak both the bank’s and the court’s language, so we can help you navigate the process. We also buy homes, in any condition, for cash. The cash we pay you can be used to pay your default and mortgage payments, so you can get out of the hole. We understand that losing your home can be stressful. Sometimes, it seems like a good idea to try and stay in the home, to keep fighting for it no matter what. But in our experience, we’ve found that’s often better to just pull the tooth and move into someplace new. We can help you by buying your home in cash, no matter its condition, so you can pay your default and find a new beginning in a new home. Call us today to learn more!