Local Fort Worth Texas homeowners facing financial challenges from the pandemic or other reasons may find themselves facing foreclosure. Continue reading to learn about foreclosure prevention measures in Texas.
Foreclosure is when the mortgage loan doesn’t get paid back as agreed to, and the bank begins the process to take ownership of the property to recoup its losses, meaning you lose your home.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few foreclosure prevention measures in Texas that, if you can implement, may allow you to keep your home from foreclosure. Timing is critical though.
Foreclosure Prevention Measures in Texas –
The foreclosure prevention measures below may not work in your situation but we’re telling you about them so you can make the decision for yourself:
1. Pay off your mortgage / sell your property. The quickest and easiest way to end the foreclosure process is to pay off your mortgage. After all, that’s what the bank wants to begin with so they’d be happy to let you stay in your home and they get their money. Admittedly, this is not possible for most families, which is perhaps the reason you’re in foreclosure in the first place.
2. Work out a deal with your lender. Sometimes you can work out a deal with your lender’s mortgage or foreclosure specialist to change your payment structure. Perhaps your payments get spread out so they are lower each month, for example. Just make sure that the deal works for you. You don’t want to find yourself in the same position in the future and have to repeat the process.
3. Do a short sale. A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off your outstanding mortgage balance with the bank. Your mortgage lender agrees to accept an amount/payoff that is less than what is owed on the house. This keeps a foreclosure from impacting your credit score and it gets the bank off your back!
4. Give you a deed in lieu. Another option would be a deed-in-lieu-of-foreclosure (DIL), which basically means that you will hand over the deed to your house to the bank and they agree not to put you through foreclosure. This will often only work if your house is worth approximately the amount owing on the mortgage. If not, the bank may pursue the difference.
5. File for bankruptcy. In some ways, bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process has to stop so it’s still a foreclosure prevention measure. In my experience many bankruptcies forcing you back into foreclosure unless you have your financial situation corrected and can bring your payment current.
6. Sell your house to a local house buyer. Although this option doesn’t allow you to stay in your home, what it does do is allow you to do is sell your house fast in Fort Worth or surrounding cities. AND, it stops the Foreclosure dead in its tracks and eliminates the stress you have been dealing with for months.
What to Do –
Companies such as TMC Property Solutions, which is an accredited business and A+ rated members of the Fort Worth BBB; many times pay all cash or, if warranted, bring the arrearages current “Stopping the foreclosure” and take over payments. When this happens we begin improving your credit score so at some point will be able to purchase another home. To learn more about how this option works, contact us by answering a few questions here, and we’ll be in touch shortly to explain your options.
We know it can be overwhelming but if you’re not sure which option is best, here are a couple of options to consider. If you have solved your financial situation and can now afford payments and you want to stay in the house then a foreclosure workout arrangement (#2) is probably your best option.
If you want to put everything behind you and move on with your life then consider selling your house and paying off your mortgage with that money.
Considering selling your Fort Worth house? Call local house buyers such as TMC Property Solutions and let us help you create your solution. Please google TMC Property Solutions and see what others have to say about our service for the past 20 years. Contact us by filling out this short form here and we’ll be in touch shortly.
We buy houses in Fort Worth and surrounding cities for cash and/or take over payments and would love to help you during this difficult and stressful time.
Be sure to reach out to us if we can do anything at all for you HERE.
TMC Property Solutions is a Veteran owned and family-run business and has been helping families across the DFW Metroplex since the year 2000, “Sell Your House Fast in Fort Worth“, providing solutions that work. We are an accredited business and A+ rated members of the Fort Worth BBB.
Google TMC Property Solutions to see what others have to say about us and our services.
20+ years providing solutions for selling your house fast!