How To Stop Foreclosure On Your House
In Texas, a foreclosure can happen very quickly (in as little as 4 months).
Many homeowners’ first reaction to a foreclosure notice is to sit back and do nothing. This reaction is because they think that the situation is hopeless and are resigned to the bank taking back their home.
However, doing nothing is the worst thing you can do in this situation.
Are you going to sit back, relax and do nothing while hoping that everything will fall into place?
If you are behind on payments and facing foreclosure due to job loss, relocation, divorce, etc.. you can still sell your house fast. Even if you have an ugly damaged house and owe more than the house is worth, you can still sell your house for cash and avoid foreclosure!
Don’t Let The Banks Take Away Your Home
According to homebuying.com, a foreclosure will damage a consumer’s credit score, lowering it on average 200-300 points and making it difficult to get another home for 5-7 years. Plus, you may be sued for deficiencies by the bank for the difference between what the house sold for at auction and what you owed. In addition, you may receive a 1099 from the bank stating that the difference is income and you can be taxed upon it. Bad things happen to good people, and knowing your options can help you prevent a bad situation from becoming even worse.
What Is The Foreclosure Process in Texas?
In most situations, you will go through a nonjudicial (outside of court) foreclosure process. In Texas, the foreclosing party must give the homeowner 2 notices:
- Notice of Default & Intent to Accelerate
- Notice of Sale (notice of intent to sell at auction at least 21 days prior to auction date)
Better Options Than Foreclosure
There are a couple of better options than foreclosure that you should consider:
Sell As-Is For Cash: If you sell as-is for cash, you get a few benefits. First, you won’t have to come out of pocket for any expenses, such as realtor commissions, closing costs, appraisals, inspections, etc… Second, you won’t have to make any repairs on the home – rather you can sell ‘as-is’. Third, because no mortgage banks are involved in a cash offer, you can close in as little as 7 days. Therefore, in many situations, selling your house to a real estate company for cash can be your best option!
Short Sale: A short sale only works if you’re behind on payments and owe more than the house is worth. If you sell via short sale, then the house buying company will negotiate with the mortgage company to accept a discount on what is owned & release their interest in a property in exchange for a cash payment. The seller (you) is not allowed to financially benefit from the transaction. The reason you want your buyer to negotiate is that they will buy the house for cash, and this ability gives them more weight with the banks when negotiating. While your credit will still be affected, this is still a better option than a foreclosure because you may be able to satisfy the loan through the short sale process.
Homeowners facing foreclosure in Texas are going through enough misery and stress and deserve options other than foreclosure. Doing nothing (or declaring bankruptcy) is probably your worst option. Want to learn more about your options? Contact us today!
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