Facing foreclosure?
It can still
be stopped.
While foreclosure is a frustrating and stressful process, it’s important to know all your options when you start falling behind on your loan payments. Maria Barrera has compiled an overview of how foreclosure works and how to avoid the damage it brings to your credit and future real estate opportunities.
When the lender
takes the house
back.
Foreclosure happens when a property owner can no longer make the monthly payments toward their mortgage or property taxes. Because mortgage loans are secured with the property as collateral, the lender seizes the property and sells it to reduce the financial loss from the defaulted loan.
A foreclosure can stay on your credit report for up to seven years, making it much harder to rent, buy another home, or borrow money. That’s why it’s essential to take the first steps before the Notice of Default is filed.
The most crucial step to avoiding foreclosure is to act as quickly as possible. Don’t wait in hope that your situation will improve on its own. 214.587.5755
Foreclosure moves fast — know where you stand.
Most Texas foreclosures don’t go through the courts, so the process can move from missed payments to auction in just a few months.
- 01
Missed payments
Late fees and calls from your lender begin after the first missed payment. This is the best time to act — every option is still open.
- 02
Notice of Default
In most cases, a lender will wait about 120 days without payment before formally starting foreclosure with a Notice of Default and a deadline to catch up.
- 03
Notice of Sale
If the loan is not brought current, the lender posts the home for sale. In Texas, notice must be given at least 21 days before the sale date.
- 04
Foreclosure auction
Texas foreclosure sales happen on the first Tuesday of the month at the county courthouse. Once the home is sold, your options are gone.
Three honest paths, in order of urgency.
- 01
Talk to your lender
Lenders can offer a repayment plan, forbearance, or a loan modification — but the sooner you reach out, the more flexible they can be. Don’t avoid the call out of embarrassment.
- 02
Sell your house for cash
If you can’t keep up with payments, selling can pay off the mortgage, protect your credit, and let you use any equity to downsize or buy again later. We can close in as little as 7 days.
- 03
Ask for a short sale
If you owe more than the house is worth, your lender may agree to accept less than the full balance. It still affects your credit, but far less than a completed foreclosure.
Owe more than your home is worth? Learn how a short sale works →
Short Sale & Foreclosure Resource® since 2010.
If you’re looking to sell your home to avoid foreclosure, Maria Barrera is SFR certified (Short Sale and Foreclosure Resource®) and has helped DFW homeowners avoid foreclosure since 2010. She knows how lenders think — and how to keep you in the driver’s seat. Call Maria today!
The sooner you call,
the more we can do.
Tell us about your property. You could have a fair, no-obligation, all-cash offer in 24 hours and close in as little as 7 days — before the auction date. No repairs, no fees, no closing costs.