When you are behind on your mortgage payments, you might be worried about the possibility of losing your home to foreclosure. Under Texas law, if you fail to make your payments, your mortgage company has the right to initiate the foreclosure process and take possession of your home without any judicial intervention whatsoever. With that said, unless you act fast, you might not be able to save your home.
If you are facing foreclosure, it is prudent to have a knowledgeable real estate attorney on your side who is well-versed in real estate finance law and can devise legal strategies to save properties. Here are some of the steps you can take with help from your attorney and save your home.
If you are facing foreclosure in Texas, the first thing you need to do is to contact your mortgage servicer or lender and discuss the possibility of mortgage forbearance. Under a forbearance agreement, your lender will stop the process immediately and allow you to make payments – as long as you agree to pay the overdue amount within a specific period of time. Depending on the circumstances, your lender might also agree to other arrangements. These might include:
- The lender will reduce your monthly mortgage payments for a specific period of time, after which you have to start making regular payments as well as an additional amount every month until the overdue amount is fully repaid.
- The lender will allow you to stop making payments altogether for a specific period of time, after which you have to pay the entire overdue amount in a lump sum or make additional payments every month until the overdue amount is fully repaid.
Under a loan modification arrangement, the lender might agree to stop the foreclosure action after a mortgage default and modify the terms of your mortgage loan to make it easier for you to repay the loan. Depending on the circumstances, the lender might decide to lower the interest rate, consider the current mortgage market, or extend the loan term in order to lower your monthly payments.
Temporary Restraining Order
Yet another way to stop a foreclosure sale in Austin, TX is to get a temporary restraining order (TRO) with the help of an experienced foreclosure attorney. However, you can get a TRO only if you can prove one or more of the following things.
- The lender violated state or federal foreclosure laws.
- The lender failed to serve you with the breach letter or the foreclosure notice.
- The lender failed to follow all the state-mandated steps in the foreclosure process.
Moreover, a TRO can only be obtained if your lender chooses to foreclose your property through a non-judicial process. A judicial foreclosure, on the other hand, is a legal process, wherein the lender will file a lawsuit in court and serve you with a notice and you can respond to it. If the court rules in favor of the lender, they can go ahead with the foreclosure and you cannot get a TRO or an injunction against it.
If the aforementioned options are not feasible, you can choose to file for Chapter 13 bankruptcy. By doing so, you can restructure your debts, pay them off within a specific period of time (usually 3 to 5 years), and keep your home.
In some cases, you might be able to reclaim your home even after it is sold off at a foreclosure auction by filing a wrongful foreclosure suit against the lender. It is, however, extremely rare and might only be possible if the lender is found to have foreclosed your property unlawfully.
Our Experienced Austin Foreclosure Attorneys Are Ready to Fight for Your Rights
If you are facing foreclosure and wondering what to do next, the experienced lawyers at Kelly Legal Group can help you. We can review your mortgage loan agreement, negotiate with your lender regarding foreclosure alternatives, and take legal action if necessary to save your home.
We have a deep understanding of judicial as well as non-judicial foreclosure processes and have a track record of achieving favorable outcomes for our clients even in complicated foreclosure cases. To find out how we can help you, call us today at 512-505-0053 or get in touch with us online and schedule a free consultation.