The foreclosure process can be complicated and varies state to state. In Texas, if you have received a ‘Notice of Default’ letter, this means that your mortgage lender has started to foreclose on your house. In this article, we will highlight the 3 main stages of the foreclosure process to raise your awareness and help you plan your options during the foreclosure process.
- 1. The Pre-Foreclosure Stage
The pre-foreclosure begins when your lender sends a notice of default letter. This letter is letting you know that you are in default of your mortgage loan and the lender is exercising their right to accelerate the loan, which means you need to pay off the remaining balance in a short amount of time. Texas property code requires at least 3 consecutive missed payments before a lender can begin this process. If the loan is not paid off by the date the lender schedules, the lender can continue with the next stage of the foreclosure process.
2. The Official Foreclosure Begins
After the date to fully pay off the loan has expired, the lender then schedules an appointment of a substitute trustee. This means that a trustee has been assigned to officially start the foreclosure process. This is usually a foreclosing attorney that is familiar with the local laws. Once at this stage, the notice of sale can take place in as little as 21 days from the next foreclosure auction. Foreclosure auctions happened the 1st Tuesday of every month. If you are in this stage, it is important to be aware of your scheduled foreclosure date.
- 3. Sold and After Foreclosure
At the time of the scheduled foreclosure auction, the house will be sold to the highest bidder and they will become the new owners of the property. It is highly recommended to move all of your possessions from the property before the foreclosure date. If you are still in the property, the new owner can file an eviction and have a sheriff physically remove the occupants and their possessions. All the possessions that are removed will be stored at the sheriff’s office where you will need to pay to take them out.
To learn more about foreclosure in Houston and would like to learn about options toavoid foreclosure in Houston, you can contact us for a free analysis of your situation. We can even make you a fast offer for your house to buy it before it gets foreclosed on. We are local foreclosure experts in Houston and have helped numerous families stop foreclosure in Houston.
