Life just happens and sometimes a home owner will need to stop foreclosure proceedings long enough to sell their house or arrange to pay the debt somehow. If you need to stop foreclosure in Houston, TX you will need to talk to experts who can help you navigate the ins and outs of the policies and procedures that the banks and lawyers follow during these proceedings.
Why Stop Foreclosure?
Are you one of the thousands of people who think that foreclosure is a bad thing but, once it’s over, you can simply get back to your life? I talk to so many people who do not realize that the nightmare of foreclosure starts AFTER the foreclosure is executed. Your life for 7 to 10 years after a foreclosure may look like this :
- The Sheriff comes to your door after the foreclosure auction and drags you, your family, and all your belongings out to the curb in front of your friends and neighbors.
- The bank files a 1099 with the IRS for up to the full amount of your loan. The IRS rules that a foreclosure counts as your income!
- The IRS seizes your bank accounts and garnishes your wages until the taxes, penalties, and interest on the taxes due are paid in full.
- The bank sues you for up to the full amount of the loan. A judgement is filed against you and the debt is turned over to national collections agencies who hound you day and night trying to collect the debt.
- Your credit rating takes a nose-dive and now you will have trouble buying another house, a car, getting approved for many rental apartments or houses, and certain jobs are out of your reach.
Avoid Foreclosure – It only makes sense…
There are several ways to delay foreclosure but the only sure way to stop foreclosure is to bring the loan current by paying the arrears or selling the house. Many people who are unfamiliar with the laws think that they can simply file for bankruptcy. Unfortunately, this is not very helpful because bankruptcy cannot remove the lien that the bank holds on the property. The house is frozen during the bankruptcy litigation until the bank files for it’s release and then foreclosure proceedings continue where they left off. A bankruptcy filing will delay foreclosure for 1 to 3 months generally, depending on how quickly the bank reacts to the filing.
A Short-Sale may work…
A bank will screen you for eligibility for a short-sale to see if you qualify. A “short-sale” is where the bank agrees to take less than the value of your loan as full payment for the debt. This is a way to sell your house if you cannot sell your house at a value above the loan amount. Sometimes, this route is misleading and often unsuccessful. If your application for a short-sale is approved, which may take a lot of time, then the foreclosure proceedings will be delayed. However, most banks continue to work the foreclosure until the legalities are complete for foreclosure to proceed, then they will delay the auction listing until the results of the short-sale are determined. Often, the short-sale is not approved after the application is initially approved and they immediately send the property to the next foreclosure sale. If approved, the short-sale goes through but may still affect your credit. The credit hit from a short-sale is not as severe as a foreclosure, but still will make your life difficult if you need credit in the future.
Time is Short to Stop Foreclosure in Texas
The bank’s loan servicing division will send you late notices and probably call you at the 30 and 60 day late dates of your payment schedule. Usually, the deed of trust for your home will be turned over to the foreclosure trustee around 90 to 120 days late. This action is public information and you may start receiving a lot of mail at his point. The trustee, a lawyer specializing in foreclosures, will process for a week or so and then send you a Notice of Default. The minimum time requirement between the NOD filing and the foreclosure auction date must be at least 21 days. Although most people are actively trying to solve their loan delinquency problem through this period, the NOD usually creates urgency if they are wanting to save themselves from the 7 – 10 year nightmare. Let’s face it, 21 days is not a long time, especially since most people only know to call a Realtor to sell their house. Realtors must prepare a lot of marketing, arranging photo’s, videos, and other marketing tools for your house and then list it on the Multiple Listing Service and other websites. It usually takes a Realtor 30 to 60 days to sell your house if you are lucky, but this depends on the amount of inventory in the market for houses like yours, the general state of repair and upgrade of your house, and the time of year, among other factors. It is very rare that a Realtor can sell your house within the 21 days before auction.
Delaying Foreclosure may be necessary
If you have tried to work through your delinquent house payments to get caught up but have failed, you need help from someone who has dealt with the foreclosure process and knows the ins and outs. Here at D&G Smith Homes, we know how to use all the methods for solving your problem. We know that if the time is very short, filing for bankruptcy, issuing a temporary restraining order, or other methods can delay the foreclosure process to give a little more time to stop foreclosure. We have worked with banks and lawyers to delay foreclosure and achieve the result of saving your credit, allowing you to get on with your life with the best credit history possible. We can buy your house for cash, bring your payments current, and close the deal at our cost within 7 days, sometimes less. However, the more time we have to thoroughly exhaust all possible solution methods, the better it is for you and the easier it is for us to stop foreclosure. So if you are facing foreclosure, or even if you are a little late on your house payments but see no relief in the near future, give us a call at 832-773-0081 or fill in our form so we can get started.