Almost everyone has financial difficulties at one point or another. It doesn’t matter who you are or how much money you have because, if you’re not careful, your lender can foreclose on your house. All it takes is a couple of missed payments for your bank to set an auction date and start the foreclosure process on your home. A good portion of the properties that foreclose could have been saved if their owner had put a bit of time and effort into exploring their different options instead of idly sitting by until their house is auctioned off.
It’s important to stay on top of your mortgage if you want to keep out of foreclosure’s path. Foreclosure prevention in Houston is something all local homeowners should look into so they will know what to do if the time should come when they can’t afford to make their mortgage payments. By keeping good financial habits, knowing what options you have, you can prepare yourself in case you face foreclosure at one point or another.
Foreclosure prevention in Houston is usually much easier if you can resolve any issues with your lender immediately instead of waiting until you’re a couple months behind on your mortgage to take action. Some methods for preventing foreclosure take longer than others so don’t wait until the last minute before trying to salvage your home. That way you’ll have more options, more time, and less stress to deal with the situation.
1. Preventing foreclosure and keeping your house.
These options for foreclosure prevention in Houston are suited for both homeowners that aren’t late on their payments yet and those who already late but haven’t missed more than a payment or two. That doesn’t necessarily mean these options won’t work for you if you’re already a few months behind on your mortgage. The idea is to resolve the problem before it gets too serious however; these options can still work for just about any pre-foreclosure.
1.1 Working with your lender.
It’s always a good idea to be on good terms with your lender. This will increase your chances of them cutting you some slack should you find yourself in a situation where you can’t get the money together for a mortgage payment. Don’t ignore their letters, notices, calls, or other attempts to get in touch with you if you’re behind on your mortgage. You don’t want them to think you aren’t planning to pay them or else they might start the foreclosure process on your home.
As soon as it becomes apparent that you’re going to have trouble paying or will be late on your payments, contact them and inform them of your situation. If you can convince them that you’re going through a rough patch but will be out of it soon and back on top of your mortgage, they may agree to let you make your payments a bit later than usual.
1.2 Reinstating your mortgage loan
If you are expecting to receive a decent amount of money in the near future, you can ask your lender to reinstate your loan. This will only work if you can prove to your lender that you will have these funds by a certain date. When that date arrives, you must bring all late payments current and pay any outstanding fees, costs, or anything else they might charge you.
1.3 Using a repayment program.
A repayment program consists of continuing to make each monthly payment along with a small portion of said late payments until you’re caught up on your mortgage. This kind of plan could be spread out over the course of a few months and, in some cases, a year or more. Your lender will probable charge you some extra fees for a repayment plan or loan reinstatement, so you might want to look into your other options if you don’t want to pay these fees.
1.4 Refinancing your house.
Another option for foreclosure prevention in Houston is refinancing the property in question. That means that you would pull all of your equity out of the property and start a new mortgage. This also gives you a chance to change the length of your loan or to switch to one that has a cheaper interest rate. A refinance probably isn’t worth the time and effort unless you have a large amount of equity in your house. Remember, you will be starting your mortgage from scratch so if you’re nearing the end of it, you may want to consider your other options.
2. Letting go of your house to prevent foreclosure.
Some homeowners who face foreclosure don’t want to deal with the hassle of keeping the property or cannot afford to make their mortgage payments and make the mistake of letting it foreclose. Many of them don’t realize how serious a matter foreclosure is and how it can impact their credit. If you have a foreclosure on your credit report, it can be extremely hard to get decent rates on future loans. Consider selling your house and you can keep the leftover sum after you’ve settled the debt with your lender while simultaneously avoiding foreclosure. If you want to improve your chances of stopping foreclosure proceedings in time, take care of the problem before it’s too late.
3. Signing a deed in lieu of foreclosure.
A deed in lieu of foreclosure gives ownership of the property in question to the lender. Some homeowners might sign this document as a last-ditch attempt to prevent a foreclosure from taking place. In the event of a deed in lieu of foreclosure, the homeowner forfeits ownership along with the any claim to the equity he’s may have put into the house over the years.
This method for foreclosure prevention in Houston probably shouldn’t be your first choice. It would be a shame to lose the house, the equity in it, and be left with nothing. The only reason to do so would be because you’ve exhausted your other options and this is only way for you to avoid a foreclosure.
4. Selling your home on the property market.
You can also prevent foreclosure by selling your house on the property market. There are a number of ways this can be done. For one, you could hire a real estate agent to sell the house for you. However, there are a couple of downsides to using a realtor with the most obvious being that you will have to pay them a commission if they succeed in selling your house. Another concern would be that the realtor might leave your house on the market for too long (waiting for a buyer who will pay more so they can get a larger commission) in which case the house would foreclose and you would be left with nothing.
If you don’t trust a realtor to sell your house and would rather be more in control of the sale, you can try to sell it on your own. You can put up a “For Sale By Owner” sign out front of your house or put an advertisement in the local paper and wait for someone to call you with an offer. However, (whether you use a realtor or not) you still run the risk of not finding a buyer who will pay your asking price in-time, in which case your house will foreclose and you’ll be left with nothing.
5. Selling your home to Foreclosures in Texas investors.
One of the best options for foreclosure prevention in Houston is to sell your house to a firm that will pay you a decent sum for it and can close quickly. If you try to sell through a realtor or on your own, you’re gambling with your property and if you lose, your house will foreclosure and you might get left with a permanently damaged credit record. Wouldn’t you rather sell your home to a firm that will take it off your hands for a reasonable price and can close right away?
Foreclosures in Texas purchases houses from homeowners that are facing foreclosure and need a buyer right away. We purchase all kinds of properties, even those that aren’t in great condition, and we have the resources to close quickly so you can get out of foreclosure immediately. Submit your house details and contact info to us so we can make you an offer. We’ll look over your property info and get back to you with a reasonable offer for you to consider as soon as possible.