FORECLOSURE OPTIONS FOR TEXAS RESIDENTS
If you reside in Texas and can’t keep up with your mortgage payments, you might want to consider other options than foreclosure, especially if your lender intends auctioning the house.
The following are options to foreclosure in Texas:
In a short sale, the homeowner sells the house for a reduced price because of the mortgage amount.
The buyer in a short sale is never the bank, and the amount received from the sales is sent to the lender. The lender can choose to let go of the balance or mandate mortgagor to pay the balance, so it adds up to the initial mortgage sum.
Note: Before you follow the short sale foreclosure option, it is paramount you consult with a real estate agent or an attorney.
Deed in lieu of foreclosure
This type of foreclosure involves the homeowner handing over the keys to the house to the lender until the lender recovers the amount owed. The downside of this option is that your credit history takes a dent, but it is better than losing the house.
Talk to the lender
This might be daunting, as you will have to be upfront about your financial situation, family situation and other personal affairs.
However, this is a discussion you must have with your lender. You don’t have to be shy or embarrassed about it. Feeling mortified will not help you save your home.
During this conversation, try to negotiate a payment option that your current financial situation can carter to. Payment options you can consider include forbearance and loan modification
Unbelievably, declaring bankruptcy is another viable option to save your house in Texas.
The downside of declaring bankruptcy is that your credit score is affected. Though both foreclosure and bankruptcy affect your credit score, it is easier and quicker to build up your credit score if you declare bankruptcy.
STILL, NEED HELP?
If you have a home in Texas and are looking for an expert real estate company to consult with and determine the best option for your home,
Reach out to Dallas Property Investors for a consultation.