Several Options to Avoid Foreclosure in Dallas, Texas
Several options to avoid foreclosure in Dallas, Texas. You may be able to reinstate your mortgage if you have enough cash at this point. Make up all the missed payments plus fees and interest the lender charges you.
Your state’s law will probably give you a certain amount of time. After the lender gives you notice that the foreclosure is beginning. You do have a legal right to reinstate the loan this way. (Check State of Texas rules here Summary of State Foreclosure Laws.)
For example, in California you have the right to reinstate your loan for three months after the lender mails you a notice of default. After that period ends, if you haven’t negotiated a workout, the lender can and will does accelerate the loan.
Contact the Lender
The lender will notify you that it is declaring the entire amount due immediately and send you a notice of sale. Informing you the house may be sold in 21 days. Even then, you can reinstate the loan up to five days before to the sale pursuant to state law. Several Options to Avoid Foreclosure in Dallas, Texas.
In some other states, the lender may accelerate the loan as soon as you fall behind in your payments. In those states, the law does not give you an opportunity to reinstate.
But more and more lenders are not eager to accelerate the loan and push ahead with foreclosure. They would prefer to work something out with you. Additionally, many mortgages and deeds of trust provide a right to reinstate as part of the agreement.
If you have enough money to be considering reinstatement, you can probably also negotiate something with the lender. Several Options to Avoid Foreclosure in Dallas, Texas.
Be mindful that most lenders don’t want to foreclose—it’s a hassle for them. Especially these days when some house prices have fallen and banks don’t want to be saddled with real estate that may be hard to sell.
Negotiate a Workout
Contact the Home ownership Preservation Foundation at 888-995-4673 or http://www.995hope.org/.) With the assistance of a counselor, you may be able to get:
- temporary relief from having to make your monthly payments (forbearance)
- a plan to make up your missed payments (at the end of your mortgage or on top of your current payments within a specified period of time)
- a lower interest rate—and as a result, lower monthly payments, or
- a reduction in your principal loan balance.
Find a HUD-approved housing counselor. Visit the Making Home Affordable website. (To find a HUD-approved housing counselor, visit the Department of Housing and Urban Development website and click “Talk to a Housing Counselor”.
Even though you can negotiate directly with the servicer, it’s always worth talking to a counselor. Their services are free, and they will help you explore possible remedies and negotiate a workout with your servicer or lender.
You may have even more workout options available to you if your loan is owned, insured, or guaranteed by a government agency such as Freddie Mac, Fannie Mae, the Federal Housing Administration, HUD, the VA, or the Rural Housing Service.
In fact, mortgages insured by the VA or the Federal Housing Administration (FHA) do not qualify for modification under the Home Affordable Refinance or Home Affordable Modification programs.
If you can refinance at a better rate and pay off your old loan, you can start fresh. Fortunately, refinancing is easier these days if you have equity in your house. If the home value curve in your community is trending up rather than down. Several Options to Avoid Foreclosure in Dallas, Texas.
Of course, if your mortgage is owned or controlled (through securitization) by Fannie Mae or Freddie Mac and you qualify for a refinance under the Home Affordable Refinance Program. Your refinancing worries may be over. (See the article here on refinancing under the Making Home Affordable program.)
Some states give you the right to “redeem” your mortgage by refinancing up until the time of the foreclosure sale.
A few even let you redeem for a certain period of time after the sale.
Article Topic: Several Options to Avoid Foreclosure in Dallas, Texas