State and federal programs can help you stop Texas home foreclosure with a loan modification, refinance or pre-foreclosure sale.
If you are struggling to make your mortgage payments and are in pre-foreclosure, you can stop your Texas home foreclosure with a loan modification from your lender. A loan modification is when you and your lender agree to new loan terms and your original mortgage policy is altered. In the majority of mortgage modification programs in Texas, your monthly payments will be reduced, your interest rate may be lowered, your repayment timeframe may be extended. Sometimes the lender will even reduce the principle amount so you can once again start building equity in the home.
A Texas home loan modification is the best way for you to reconcile your debt and stay in your home. You can work directly with your bank lender or hire an attorney to help you. You can also seek modification though the U. S. Department of Housing and Urban Development (HUD). HUD offers programs for loan modifications, refinancing, pre-foreclosure sales and ways to exit your mortgage. These programs can help you if you are unemployed, underwater on your mortgage or facing foreclosure for any reason.
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In order to have your mortgage modified, you must meet certain criteria. Mainly, you must be able to afford the new, lower monthly payments and make your loan payments on time. Many modification programs start with a trial period that could last up to a year. If you are late just once during this trial period, the modification is void and the foreclosure process will proceed.
In Texas, foreclosures are non-judicial and there is no right of redemption period. This means that you once you miss a payment, you can immediately get a Notice of Sale (NOS). If you do not stop the Texas foreclosure, your home will be auctioned in 21 days or on the next first Tuesday of the month. You can bid on your home at the auction. However, unlike other states, Texas provides no redemption period after the sale in which you may buy your home back by paying the past-due payments and auction fees. These foreclosure proceedings will stop when you begin the modification process. If you meet the requirements for a loan modification you can start a trial payment period.
The loan modification process may take some time, but it is worth pursuing if you want to keep your home and avoid any negative tax and credit consequences. If you would like more information on how to stop Texas home foreclosure with a loan modification, Reply! can help you find an expert in your area.