The term foreclosure often used in the real estate industry may sound familiar to you. Foreclosure is a legal procedure wherein a lender takes back possession of a property from a homeowner who has defaulted on their mortgage payments. As a consequence, the lender sells the property at an auction to recover the outstanding debt. The foreclosure process varies by state; hence, if you are interested in learning about foreclosure in Houston, Texas, keep reading this article.
Understanding Foreclosure In Houston
The legal basis of foreclosure relies on the mortgage or deed of trust contract. According to that the lender can use the right to take back their property if the borrower fails to abide by the terms of the mortgage document.
However, the laws that govern foreclosure vary from one state to another. Usually, before the actual act of seizing property in foreclosure, there is a lengthy pre-foreclosure process. In 22 states, including New York, Florida, and Illinois, judicial foreclosure works, where the lender needs to go to court to get permission to foreclose.
However, other 28 states, including Texas, involve a nonjudicial process, also known as the power of sale. Hence, foreclosure in Houston, Texas, settles outside the courts unless the homeowner sues the lender.
Buying Properties – Foreclosure in Houston
Foreclosure properties are usually sold through auctions, which urges the buyers to be ready with quick cash or prompt financing for a secure purchase. Also, buyers during foreclosure in Houston, Texas, may face complexities such as outstanding taxes, liens, evictions, etc.
Foreclosure is different from pre-foreclosure, where the homeowner sells the property not through an auction but through a short sale. Although short sales present an attractive choice for buyers who seek favorable deals, there are chances of unpredictability and it requires time investment.
Foreclosure In Houston – Ways To Protect Your Home
If you are confronted with foreclosure, Texas, you need to take prompt action with difficult choices. To prevent foreclosure, you need to carefully consider the available options and pick the best possible solution. The challenging situation of foreclosure urges you either to sell the property or increase your income to pay the outstanding mortgage debt. The ultimate goal of homeowners is to relieve financial strain and achieve a sense of stability.
Sell the property
If the difficult situation of foreclosure, is confronting you, selling the property is a good solution while you are unable to sustain mortgage payments. By selling, you can recover some or all of the money you owe, thus avoiding foreclosure in the first place. For that, you can work with a real estate agent or explore a short sale yourself. However, you need your lender’s approval for a short sale, which involves selling the property for less than the outstanding mortgage balance.
Find ways to improve your income
As a homeowner, if you face foreclosure in Houston, Texas, you can explore ways to improve your income and better manage the mortgage payments. This approach demands that you analyze your personal finances and identify ways to save or seek additional sources of income. A part-time job, renting out a room, freelancing, or pursuing new career opportunities are some ways to supplement income. If possible, seeking additional income sources is the best option, as it can not only reduce current financial strain but also sustain you in meeting mortgage obligations in the future.
Reach out to your lender
Yes, in the event of a possible foreclosure in Houston, Texas, you can try to reach out to your lender as soon as possible. Many lenders have assistance programs for homeowners like loan modification, forbearance, or repayment plans according to the homeowner’s personalized situation. It’s a wise decision to discuss the situation openly with your lender to find a mutual solution that works for both parties.
Take the help of Move On House Buyers
If you are on the verge of foreclosure in Houston, Texas, Move On House Buyers can offer their help. As cash home buyers, they can buy your property outright. Move On House Buyers make an offer, and if you agree, they can close on your property when you want.
Foreclosure In Houston – Reason to Adopt
If you are struggling with your mortgage payments and want to avoid foreclosure, you can reach out to Move On House Buyers. Financial difficulties are part and parcel of life, and you need to remember that seeking assistance or exploring new means doesn’t indicate your failure. Rather, it shows a proactive approach toward safeguarding homeownership. Move On House Buyers can help you come out of your difficult time by buying your property with a fair all-cash offer.