How to Avoid Foreclosure in Houston – 7 Tips
Posted on June 4, 2018 by Amanda & Brandon Gladin
Do you need to know how to avoid foreclosure in Houston? Losing a home is a nightmare most people will never have to face.
But we all have rough spots in life; people lose jobs and major events can happen that seem to make money disappear. If you fail to make your mortgage payments, you might be at risk for losing your home. If it is worth less than what you owe, you could be losing more than just the house. You might owe your lender even more money!
Foreclosure is a terrifying prospect, but it doesn’t have to happen. There are steps you can take to prevent foreclosure from happening. I want to share my experience with you so you can keep a roof over your head and stress behind you.
Here are some tips for how to avoid foreclosure in Houston.
#1: Admit There is a Problem, Don’t Ignore It!
The first thing that needs to happen is making sure we do not ignore the problem. It is so easy for me to let my mail pile up. When it comes to finances, getting behind is daunting. It is important to acknowledge what is going on to be able to take steps to move forward. Accept it and move forward with actionable tasks!
#2: Communicate with the Lender
Let’s get one thing straight here – Your lender does NOT want your house!
It is a business decision to get funds moving again, but it does not have to come to that. Know that the lender would prefer to NOT take on another foreclosure; it is not their goal to hurt you.
Open all your mail, especially from the lender. It will likely contain suggestions on what steps you can take to prevent the foreclosure process right away.
#3: Take a Look at Your Finances
Keeping your home should take priority. There is always wiggle room somewhere. Really inspect your financial habits and see where you might alter your spending to be in the mortgage’s favor.
#4: Know Your Rights
Another step that will help you prevent a foreclosure in Houston is to read up on your mortgage agreement so you know exactly what happens when you fail to make payments.
Be educated, not a victim.
There are going to be people out there that want to take advantage of you in in this vulnerable position. Foreclosure prevention companies may be helpful, but they are also going to charge you funds that could be applied to the mortgage. You can save this money for the lender to best maximize your money.
Also be aware of foreclosure recovery scams! Do your own due diligence. You can do this! Do not become susceptible to too-good-to-be-true offers.
#5: Consider Short Sale Offers
After foreclosing, a lender is simply going to try and resell the home. If you can offer them a reasonable short term offer, the lender may appreciate the assistance in saving them time and money. Aggressively seek a buyer for your home to aid the lender.
This can take some footwork, and is something I have a lot of personal experience. I would love to assist you if this is the route you are looking to take!
#6: Apply for a Loan Modification
If your request for a loan modification is approved, it will stop the foreclosure as long as you continue to make the modified payments.
This is not a great last minute strategy, but it is effective in stopping foreclosure. It delays foreclosure if the lender is restricted from dual tracking, which is when the lender continues with a foreclosure while an application is processing.
#7: File Bankruptcy
Because foreclosure is considered a collection activity, bankruptcy stops foreclosure immediately upon declaration. It does not let you off the hook for your debts, but buys you more time and allows others to mediate with your creditors on your behalf.
If any of this sounds daunting or technical…
Avoid Foreclosure in Houston – Final Thoughts
The thought of how to avoid foreclosure in Houston may seem daunting—and it certainly can be, and I want you to know I understand.
I have taken many people through this stressful process, and I want you to know that my experience is available to you if you do not want to walk through this alone! I know the ins and outs of foreclosure, and I am just a phone call away at 832-839-0890.