Foreclosure can be a confusing process, and it’s not always easy to get accurate information. Many homeowners ask, “How long does a foreclosure take in Texas?” The answer is that it can vary widely, depending on several factors. For personalized help with your particular situation, reach out to an experienced Fort Worth foreclosure attorney at Steele Law Firm, PLLC.
Contracts for mortgages, home equity loans, and other kinds of loans relating to real estate include an obligation by the borrower to make regular payments. If they fail to do so as agreed, the lender can take certain legal actions, such as foreclosure. Foreclosure is the legal process by which a mortgage company or other lender reclaims ownership of the property. It then usually sells it to recover the remainder of the unpaid loan balance.
There are two main types of foreclosure processes. While some states only allow one type or the other, both are allowed in Texas. Judicial foreclosure means the foreclosure has to go through the court system, but it is uncommon in Texas. Most foreclosures are non-judicial, which means the case does not have to go to court. Instead, there is a rigid procedure the lender is required to follow to give the borrower a final chance to resolve the debt.
Each homeowner’s situation is a little different, but there are strict regulations in place for both types of foreclosure. These regulations provide some expectations for at least a minimum timeline, although the process often takes longer. In most cases, that is a benefit because it allows the borrower more time to figure out a solution. Judicial timelines often take longer because busy court schedules can mean long waits for hearings.
There are three basic steps for non-judicial foreclosure, which is the process most foreclosures use in Texas:
This is the basic process for foreclosure in Texas, but homeowners can often slow it down by taking advantage of their rights. As the lender is required to send these notices to the homeowner before they can take further action, the homeowner can stop the foreclosure at any point throughout the process by curing the debt.
If the homeowner applies for loss mitigation, a mortgage lender is required to pause the foreclosure to review the application and consider the options. These may include forbearance, loan modification, short sale, or additional assistance for some kinds of loans or certain borrowers.
Another option for many homeowners facing foreclosure is bankruptcy, which stops the foreclosure until the bankruptcy process is complete. Many people do not realize you can often keep your home when you file for bankruptcy. Since each situation is unique, not all foreclosure alternatives are good options for every homeowner. A qualified attorney can help you determine which choice is right for you and your personal circumstances.
A: Texas does not have a redemption period for foreclosure on mortgage loans, but it does have a redemption period for foreclosure due to delinquent property taxes. A redemption period is an amount of time after the property is sold to pay the lender, wherein the borrower can buy their home back from the purchaser. For property tax foreclosures in Texas, a homeowner has 180 days from the date the deed is filed to “redeem” or buy back their home.
A: The most common reason for foreclosure is that the homeowner does not make their mortgage loan payments as agreed. There can be a variety of causes, such as job loss, illness, divorce, or many others. In some cases, foreclosure may be the result of or expedited by:
A: The 120-Day Rule for foreclosure refers to a federal regulation that prohibits mortgage lenders from foreclosing on a person’s home until they are 120 days behind on their payments. This is part of a set of laws that give homeowners time to learn about their options to cure their debt. They could also take other actions to avoid foreclosure and keep their home.
A: You can delay a foreclosure in Texas by submitting a loss mitigation application to your mortgage company and asking for forbearance, loan modification, a payment plan, or other options. In addition, filing for bankruptcy can delay the foreclosure of your home. However, not every option works for every situation. A knowledgeable foreclosure attorney can help you determine which choices apply to your circumstances.
Steele Law Firm, PLLC, is dedicated to helping each client find solutions that work for their individual situations. If you’re facing foreclosure, contact our office today to schedule a consultation.
