Facing Foreclosure? Here’s How to Stop It

Owning a home is often cited as part of the American Dream. But in some cases, homeownership can turn into a nightmare. Given that real estate costs keep rising while wages remain steady — and that so many Americans are dealing with all kinds of debts, from student loans to medical bills — it’s becoming less and less affordable to own property.

Unfortunately, many people don’t find out that owning their home is financially infeasible until they’re faced with a crisis. If you’ve realized you could be facing foreclosure due to economic hardship, you certainly aren’t alone. However, it’s important that you have a thorough understanding of the situation in which you find yourself and take action in order to stop foreclosure if possible.

Why Does Foreclosure Happen?

Foreclosure, which involves the legal process of repossessing a home, can occur after a borrower fails to make mortgage payments to their lender. This typically won’t occur after only one late payment, as it’s in the lender’s best interests to do whatever they can to obtain payments from the homeowner. However, failure to communicate with your lender after missing more than three mortgage payments could result in a foreclosure filing.

In most instances, foreclosure doesn’t occur because the homeowner is knowingly attempting to defraud the lender. Usually, it stems from other financial issues that make it impossible for the borrower to make timely payments. These might include:

  • Divorce or death of a family member
  • Job loss or demotion
  • Medical emergencies or health problems
  • Excessive debts
  • Unexpected payment increases
  • Surprise home expenses

Clearly, there are a number of situations that can jeopardize your ability to remain in your home. And short of a major windfall, you might not see a way to keep your house. But contrary to popular belief, there are a few ways to stop foreclosure from happening.

How Can I Stop Foreclosure in Texas?

The ideal scenario here starts with communicating with your lender. If you simply need a bit more time to make payments or your loan terms can be readjusted, you may be able to remain in your home and continue making more affordable payments. There are a number of ways that lenders may choose to forgive payments or agree not to file a notice of default. But you need to talk to your lender for this to potentially take place.

Even if a notice of default has already been filed, you do have options. Filing for bankruptcy may be considered by some homeowners, though it’s not a perfect solution. While this will stop the foreclosure process for the moment, a bankruptcy filing can have major consequences on your credit for several years after the fact — and it may not stop you from losing your home. You could also deed the home back to the lender, in some cases, which would effectively cancel the mortgage.

One of the best options, however, is to sell your home. Keep in mind that selling a property fast may be easier said than done. Although 86,205 single-family homes were sold in Houston during 2019, not all of them were listed on the traditional real estate market. When you need to sell a house quickly, you should consider working with cash home buyers who can make an offer and close on your home in a matter of days. This can help you get the financial freedom you need during a stressful time.

If you need to sell a house quickly due to impending foreclosure, we’re here to help. To learn more about how we can help you sell a house quickly or to find out the value of your home, please contact us today.