Being faced with foreclosure in Houston could feel like an enormous burden over your head. It’s a fast process and every minute counts in attempting to stop foreclosure in Houston. If you wait too long, it can restrict your options and make it more difficult to save your home and get out of financial troubles.
Being proactive opens the door to options such as selling your home to cash or negotiating with lenders or finding alternative ways to regain your footing.
This article explains the importance of speed as well as how Houston homeowners can get their lives back in order ahead of time before they are too late.
Why Speed Matters in Foreclosure
It’s not a quick process However, it can happen more quickly than many people think. In Texas, the process could begin just a few weeks after a missed the mortgage payment. Mortgage lenders send notices to homeowners, and if the payments aren’t made, they may decide to auction the property within 90 days.
Fast action for a stop foreclosure Houston allows homeowners to have more options. In the long run, waiting too long will mean less options and anxiety.
If a person fails to pay a loan and the lender is notified, they send a warning of default.
This is the initial warning signal. Homeowners generally have a period of 20 days to act before the situation gets out of hand. If nothing is changed, the lender can schedule the foreclosure sale.
If they act quickly, they are able to talk with their lender, think about the possibility of selling the property, or get help from a housing counselor. In the meantime, it is harder to negotiate or locate an interested buyer who is willing to pay a fair amount.
Options to Stop Foreclosure in Houston TX
Houston homeowners have many options to stop foreclosure Houston However, are all best if they begin in the early stages.
Here are the best strategies to fight foreclosure, and the reason for the importance of timing for each.
Talk to the Lender
They don’t want to close when they can get around it. It is costly and takes time. There are many options available, such as modification of loan terms, which can lower the monthly cost of payments or forbearance, which stops payments for a period of time.
However, these are time-consuming to establish. Homeowners must contact their lender immediately if they are late on a payment. The delay until the foreclosure notice is sent is often a sign that lenders are less accommodating.
For instance, for instance, a Houston family facing medical bills could get an amended arrangement for payment if they pay out before. If they delay until the home is scheduled for auction then the lender could say they’re too late.
The lender’s early action indicates that the homeowner is committed to fixing the issue.
Sell the House for Cash
The ability to sell a house quickly can help stop foreclosure in Houston by paying off the mortgage prior to when the bank can take the property.
Cash buyers, similar to those who are local Houston real estate investment firms, can make this happen.
They purchase homes in their current condition which means that there are no repairs or maintenance required. They can also close within one week. This is a great option for homeowners who have to take action quickly.
The problem? Cash offers tend to be less than the market value. For those who are in foreclosure it is important to move quickly rather than getting the highest price.
Selling before the deadline also means that you can avoid the harm that a foreclosure can do to credit.
A foreclosure remains on your credit file for seven years, which makes it difficult to purchase a new home or to obtain loans. Fast selling can help secure the family’s financial future.
Talk To An Experienced Housing Counselor
Housing counselors who are free in Houston aid people with foreclosure.
They will explain the options available and connect homeowners with lenders, and identify government programs to assist with the payment. However, counselors require time to analyze the situation and develop plans.
Calling them earlier–before foreclosure process has begun–gives the chance of helping.
For example, a counselor may assist a homeowner in applying for federal programs like that of the Homeowner Assistance Fund.
These programs will cover missed payments, but applications require several weeks to process. Beginning early can make all the difference.
File for Bankruptcy
The filing of bankruptcy may stop foreclosure for a time. It’s a major move and not suitable for all, but it does give you the time needed to plan the next steps. The issue is that bankruptcy involves paperwork and legal assistance, which can take time to prepare.
Doing it at the final minute can make it difficult to file the right way and could result in mistakes that harm more than they help.
Conclusion
The thought of foreclosure is frightening However, it’s not necessarily an end to the world.
Being proactive allows Houston homeowners the opportunity to decide what path they want to take. It doesn’t matter if it’s selling the home in cash, working with a lender, or seeking help from a counselor; each option is more effective when you start at a young age.
Don’t allow time to pass by. Each day is filled with less options and greater stress. Ask for help, find possibilities, and take that first step towards avoid foreclosure Houston right now.
For more information on how to sell your home quickly and stop foreclosure, visit Magnus Real Estate LLC