Temporary Restraining Order To Stop Foreclosure
andA Temporary Restraining Order (TRO) is a legal order filed by an attorney on behalf of a homeowner against their lender. In most cases, it will result in a brief delay (30 days, give or take) of a foreclosure auction – which may provide enough time for a homeowner to sell a home using other strategies, or catch up the payments. The best way to temporarily stop a foreclosure (up to) the day before an auction (and when a homeowner does not need to otherwise declare bankruptcy) may be to file a Temporary Restraining Order.
TROs are a legal specialty – you must have an attorney, with this specialty, lined up in advance if you need to utilize this maneuver. For more legal information go to Law Summary of Foreclosure in Texas or to Texas Legislation Online.
Advantages and Disadvantages
The advantage of a Temporary Restraining Order is that it can be done at the last minute just before the home is actually auctioned off by the lender and foreclosure can be stopped.
In addition, it does not require the homeowner to declare bankruptcy and thus often both a bankruptcy and foreclosure can be avoided. Once the TRO is filed, the auction is stopped or nullified until the lender has the TRO lifted.
The disadvantage to filing a TRO is that it costs money and is only a temporary delay on foreclosure.
A TRO, is an option for you to keep your house, if that is not possible, sell your house as-is is a better option, we can make you a fair offer following these 5 steps process to buy houses, so you can start again fresh, with no debt and if possible, with money in your pocket.
Common Questions About TROs
Question: How and How Much?
Answer: Generally you consult with a TRO attorney and complete the paperwork. Attorneys charge different fees for this. We have seen this cost around $2000 for most people. This is a specialized area of law.
Question: Does a TRO Stop Foreclosure?
Answer: Yes, temporarily. TROs delay a foreclosure until the lender files a motion to have the TRO lifted. This almost always happens.