Facing a foreclosure in Houston, Texas can be a scary thing. Most people are overwhelmed when they hear they are facing foreclosure and simply accept it as fact and let the process unfold. If this sounds like you, find comfort in the fact that there is something you can do. When you’re served a notice of foreclosure, there are still other solutions that will allow you to settle your debt and maybe even keep your home.
Impact of a foreclosure in Houston
You may think that a Houston foreclosure is the end of the line when it comes to your mortgage – that if you let it happen, your problem will resolve itself at the cost of losing your property. However, things aren’t as simple as that. If you let a foreclosure in Houston happen, it doesn’t always mean that the problem ends when the house is sold.
Firstly, a foreclosure will have a massive impact on your credit score. When you get foreclosed on, your credit score takes a huge hit, and it will be harder for you to buy or rent a home in the future.
The next problem with a foreclosure in Houston is that when the house is auction off and sold, it might not always pay off the debt. If the house is sold at a value lower than what you owe, this is called a “deficiency.” The lender can seek a deficiency judgement from the court that allows them to collect the amount from the borrower.
For example, if you owe $300,000 and your house is auctioned off and sold for only $250,000, there is a deficiency of $50,000. The lender can then seek a deficiency judgement that will give the right to collect that $50,000 from you to fully pay off your loan. This a major loss for you as you not only lose your home, but you also still end up in debt.
What else can I do when facing foreclosure in Houston?
The good news is that when you start falling behind on your payments, it’s not the end of the line. A foreclosure can’t officially start until you’re more than 120 days past due on payments, subject to a few exceptions. Before you even reach that point, federal mortgage servicing laws require the servicer to contact or attempt to contact you by phone no later than 36 days after you miss payment to discuss loss mitigation options. These include loan modification, forbearance, or a repayment plan. This is your first chance to get back on track with your payments and prevent a foreclosure
However, if repaying the mortgage isn’t feasible, another option is to sell your house in foreclosure in Houston. Many don’t think of this, but it’s totally possible to sell your house before a foreclosure happens and use the proceeds to repay your debt. Through this, not only do you have a good chance of repaying your mortgage, but you also prevent the negative impact a foreclosure has on your credit score. This puts you in the driver’s seat when it comes to the foreclosure process.
When selling your house in foreclosure, you’ll need to work with a good agent who can help you sell it with the intention of paying off your mortgage. They can help you understand the market value of the property, prepare and stage it for selling, and also help you negotiate during the process to make sure you close at a price close to the amount that you still owe.
During this process, you’ll need to inform your lender of your short sale so that they can postpone any foreclosure action while your house is on the market. This will give you more time to find a buyer.
Since time is of the essence here, what happens if you’re pressed for time and still can’t find an appropriate buyer?
Selling to a professional homebuyer
If you’re running out of time and you still can’t find a buyer, consider selling your home to a professional homebuyer service. Companies like Ohana Legacy Properties, LLC. can help sell my house fast in Houston, TX. In just 3 easy steps, you can get a fair cash offer for your home to help pay off your mortgage and prevent a foreclosure sale from happening. A professional homebuyer like Ohana Legacy Properties is a quicker and safer way to sell your home, and you won’t have to worry about a deal not pushing through. Call us today and find out how to get cash for your house in Houston.