3 min read
September 27, 2021
Understanding the foreclosure process in Texas is an important part of navigating your own home foreclosure.
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.
Foreclosure is no fun. But just know that it’s not the end of the world.
When you know how foreclosure in Texas works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
There are a few stages that are important to any foreclosure process.
Foreclosure works differently in different states around the country.
The two ways different states use to foreclose upon a property are judicial sale or power of sale.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Metroplex Homebuyers to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
We buy houses like yours from people who need to sell fast.
Other Foreclosure Resources For Dallas Texas HomeOwners:
Selling a property in today’s market can be confusing. Connect with us on social media or contact us with any questions.
https://credit-n.ru/order/zaim-migone.html https://credit-n.ru/offers-zaim/joymoney-srochnye-online-zaymi.html
3 min read
September 27, 2021
2 min read
August 8, 2022
2 min read
November 5, 2022
Tell us about your property in 5-10 minutes.
Oops, looks like an email. Please write the address of the house you want to sale.
Enter your email address and we will send you a link to change your password.