How To Avoid Foreclosure Houston
Sell Your House Fast to Avoid Foreclosure - Texas Foreclosure Prevention
Are you behind on your mortgage payments? If so, you might be at risk of Foreclosure.
We can help you avoid Foreclosure in Houston.
One of the best options is to sell your house fast, for cash, in as is condition, so you can settle up with the bank & get out of this situation!
Depending on how far along the Foreclosure process has gone, you might need to consider selling your Houston house via Short Sale as well.
The most important first step is understanding your exact situation.
What is Foreclosure? Understanding How to Avoid Foreclosure Houston.
What exactly is a Foreclosure?
Foreclosure is what happens when you as the Homeowner fail to pay the mortgage.
More specifically, it is a legal process by which the Homeowner forfeits all rights to the property.
If you are unable to pay off the remaining mortgage, or sell your Houston home via Short Sale (with permission & agreement of the Lender)...
The property then goes to a Foreclosure Auction.
If it doesn't sell there, the Lender takes possession of it.
Why is it so important to avoid Foreclosure?
If you go through a Foreclosure, there are a lot of negatives you'll face in the moment and for years to come.
First of all, and most obviously, you'll lose your house!
You will also take a serious hit to your credit score (FICO). A Foreclosure is a particular & unique filing that shows up on all credit reports.
In fact, it will appear and stick with your FICO for 7 years --- for the duration of which you'll have a much more difficult time getting approved for credit or loans.
It can even effect your ability to rent a property!
What triggers the Foreclosure process?
Foreclosure is the very last step in a long process of being behind on your Houston mortgage payments.
Below we will examine the broad 5 Stages that your property will go through before, during, and after Foreclosure.
STAGE 1: MISSED PAYMENTS
The first stage is missed payments.
There are dozens of common reasons why you might have missed your payments as a Homeowner & Borrower:
- Employment issues?
- Maybe you were laid-off, fired or quit your job.
- Maybe you were unable to continue working due to medical conditions.
- Excessive debt & expenses?
- Maybe you simply were unable to afford the payments.
- Maybe the house needs more work than you can manage.
Or maybe you're facing any number of other issues which prevented you getting your mortgage paid on time.
Regardless of the cause:
If you are late on your mortgage payments, talk to your Lender ASAP!
Many Lenders can provide some accommodation if you are facing issues making your payments. But you better not wait for them to come chase you down for not paying.
STAGE 2: PUBLIC NOTICE
After 3 - 6 months of missed payments, the Lender will record a public notice w/ the County.
This will include a Notice of Default (NOD), or lis pendens filing (Latin for suit pending)
At this point, you will have an encumbrance on your title that will prevent the house from being sold without the approval of the Lender.
STAGE 3: PRE-FORECLOSURE
Once notice is recorded, you'll typically have 30 - 120 days of grace period known as "pre-foreclosure." (Consult with a qualified attorney to determine the exact time period! This is not legal advice.)
During this time, you'll need to find a resolution with your Lender via Short Sale or getting current with your payments.
Otherwise, the Foreclosure will proceed.
STAGE 4: FORECLOSURE AUCTION / TRUSTEE SALE
If you have not resolved the situation by either selling your Houston house via Short Sale, or getting on an approved payment plan with your Lender...
At this point your house will be Foreclosed.
The Lender, or their representative (referred to as the Trustee), will set a date for the Foreclosure Auction.
The Notice of Trustee Sale (NTS) will be recorded with the County, with notifications delivered to you, posted on the property, and printed in the local newspaper. Auctions are typically held at the County Courthouse, in the Trustee's office, online via silent bidding, or sometimes even at the property itself.
Depending on circumstances, you as the Owner will probably have "right of redemption" if you can come up with the outstanding debt, right up until the Auction date.
STAGE 5: POST-FORECLOSURE
If the property is not sold at the Foreclosure Auction, or if the Lender takes ownership, it becomes what is known as a bank-owned or REO (Real Estate Owned) property.
Typically bank-owned properties will be sold with a local Houston Real Estate Agent on the open market, or via bulk auctions & liquidation sales to financial institutions & large investors.
At this point, the Foreclosure has happened, your house is lost, and the damage to your credit is done & recorded.
So let's not let it get to that! Work out something with your Lender ASAP, or...
Sell your house via Short Sale before your Foreclosure proceeds.
Ways To Avoid Foreclosure Houston
Refinancing Your Houston Mortgage
Refinancing your mortgage simply replaces the existing loan with a new loan.
The new loan hopefully will help you consolidate debts and reduce monthly payments.
Ideally, you'll be able to refinance your Houston mortgage at a lower rate, with favorable terms (fixed-rate loan or adjustable). This will be a more permanent solution than most loan modifications, and usually, offers more advantages.
There are some disadvantages of refinancing.
Refinancing can be hard to qualify for. Especially if you're already behind on your mortgage, facing other credit issues, or have accumulated little home equity since taking your current mortgage...
A mortgage refinance loan might be out of the question.
So, if you are facing issues with poor credit and/or little home equity, you might want to consider the following option.
Requesting a Mortgage Loan Modification
A Mortgage Loan Modification on your current Houston mortgage loan is just an adjustment to the terms of your existing loan.
Most of the time this is only for a short period of time to help you get your head above water, and back current with your mortgage.
However, the original loan does not disappear --- it is still in place. You will still owe at least the remaining principal, oftentimes with added fees for the Modification.
This option will typically be your only choice if you don't qualify to refinance your Houston mortgage loan.
While imperfect, a Mortgage Loan Modification is almost always a significantly better option than Foreclosure!
There are still drawbacks.
For example, since it is easier to qualify for, more Borrowers elect to do it when facing mortgage issues.
As you can probably guess, this puts more on the plate of lenders, causing a typical mortgage adjustment to take as long as 6 - 10 months before being finally approved!
If you are looking for the fastest & easiest solution to Avoid Foreclosure Houston, there's nothing better than:
Selling Your Real Estate to Avoid Foreclosure
If you skip the Refinancing or Loan Modifications, your fastest & easiest option is to sell your Houston real estate as is, fast, for cash.
However, if you're already facing potential Foreclosure issues, and if your house needs work or improvements before it's ready to be shown...
A traditional listing with a Houston Real Estate Agent might not be your best choice to sell your house to avoid foreclosure.
Listing with a REALTOR on the MLS comes with some disadvantages that are commonly overlooked, and might cause some real problems in your situation.
For example, the average time it takes to sell a home is between 81 - 106 days.
This can present a real problem, especially if you're already in financial distress, behind on the mortgage and/or underwater with no equity.
Plus, when working with a Real Estate Agent, you'll be paying an additional 6% (or more) in fees.
Worst of all, if you owe more than you expect the house will sell for, you'll likely need to sell as a Houston Short Sale... meaning the Lender will also have to approve any Buyer (and their offer).
If you'd prefer to get out of this situation as soon as possible, with fewer hassles,
Skip the Real Estate Agent listing process and sell directly to a local real estate investor who knows how to help you avoid Foreclosure in Houston.
Depending on your situation, we can either:
- Help you with a Short Sale, negotiating on your behalf with the Lender to get your house Sold, or...
- Buy the property outright, fast, for cash, without involving the Lender (so you can simply pay off your mortgage 100% and be done with it).
Either way, we buy houses, and can help you avoid Houston Foreclosure by selling your house fast.
Avoid Foreclosure Houston: Sell Your House Fast To Local Investors
We Buy Houses Houston, As-Is, Fast, for Cash to Help You Avoid Foreclosure.
Benefits of selling to us include:
Sell your Houston house FAST.
Exactly how fast can we get your house off of your hands?
Generally, we are able to close in as little as 2-4 weeks.
To learn more, check out how to sell your Houston house FAST.
Sell your Houston house for CASH.
We are cash buyers, meaning:
There will be no need to discuss financing contingencies, or anything of the sort.
Sell your Houston house 'As Is'.
There is no need to worry about any home improvements, clean up, or repairs before selling to us.
We buy Houston houses as is, fast, for cash.
Sell your house with No Fees or hidden costs.
By selling to us, you will save the hefty 6%+ fees associated with using a Real Estate Agent.
We will buy from you directly, with no Agent Fees required.
The only Closing Costs will be typical fees of any real estate transfer working with a reputable local Houston Title Company.
To get started on the home selling process, and receive a no-obligation cash offer for your house: