Foreclosure in Houston
Providing Skilled Defense Strategies for Clients Facing Foreclosure
Owning a home is one of the most common goals of Texas citizens. Unfortunately, various factors, including job loss, medical bills, and divorce, can quickly lead homeowners to fall behind on their payments. In Texas, lenders are legally allowed to begin foreclosure after just one missed mortgage payment, but in practice, they usually wait about 120 days before starting the process.
If you are facing foreclosure, the most effective solution to protect your home is to hire an attorney. Kisch Law Firm, PLLC, is a Houston-area law firm dedicated to helping homeowners stop foreclosure. Our skilled attorney has comprehensive experience helping families facing foreclosure and would be honored to assist you with your legal needs. Contact our law firm today to schedule a free case evaluation regarding your legal options.
What is Foreclosure?
If you are buying a home in Texas, you most likely have financed your home through a mortgage. If you have a mortgage, you agreed to pay the lender a specific amount of money, usually through monthly mortgage payments. Under the terms outlined in the mortgage contract, the borrower acknowledges that they are responsible for making timely payments to maintain ownership of their home or property.
When Texas homeowners fall behind on their mortgage payments, state law allows the lender to initiate the foreclosure process and sell the property at a foreclosure auction to recover the unpaid debt. A mortgage contract is a legally enforceable agreement, meaning that the lender has the right to begin the foreclosure process in the event of mortgage default.
If you have fallen behind on your mortgage payments, you are at severe risk of losing your home or property to a foreclosure sale. A skilled attorney can implement foreclosure defense strategies that can help you save your hard-earned investment and give you the peace of mind you deserve.
What are the Different Types of Foreclosure in Texas?
Texas employs two distinct foreclosure processes, judicial and non-judicial, when homeowners fail to make their mortgage payments. The type of foreclosure process used depends on the loan agreement and whether it includes a power of sale clause, typically found in a deed of trust. If a power of sale clause is present, the lender may proceed with a non-judicial foreclosure as allowed by state law.
Non-Judicial Foreclosure
Non-judicial foreclosure is the most common type of foreclosure in Texas and is governed by Chapter 51 of the Texas Property Code. This process is available when the loan agreement—typically a deed of trust—includes a “power of sale” clause. It begins with the lender sending a Notice of Default and Intent to Accelerate via certified mail, giving the homeowner 20 days to pay all past-due amounts, including fees, to stop the foreclosure. If the default is not cured, the lender may move forward with a foreclosure sale. The sale must be publicly posted and served to the borrower at least 21 days before it occurs. Foreclosure sales in Texas are held on the first Tuesday of each month. This non-judicial process avoids court involvement, making it faster and less expensive than judicial foreclosure.
Judicial Foreclosure
Judicial foreclosures are less common in Texas but are required when the loan or lien does not include a power of sale clause. This applies to certain types of debts, such as HELOCs, tax liens, HOA liens, mechanic’s liens, and reverse mortgages. In these cases, the lender cannot use the non-judicial process and instead must file a lawsuit against the borrower. The case will then proceed through the court system, which typically involves a more expensive litigation process.
A lender may decide to pursue an expedited foreclosure sale if a home has been abandoned by filing an Application for Expedited Foreclosure under Rule 736 of the Texas Rules of Civil Procedure. This allows the foreclosure to proceed more quickly through the court system.
What are the Different Steps in the Non-Judicial Foreclosure Process?
The various steps involved in the foreclosure process depend on whether it is a judicial or non-judicial foreclosure. In Texas, the majority of foreclosures are non-judicial, meaning they do not require the lender or borrower to appear in court for a hearing. The steps involved in a non-judicial foreclosure include:
Default and Notice of Default
After a homeowner fails to make payments, the lender can send a Notice of Default and Intent to Accelerate. The notice alerts the borrower to the lender’s intent to foreclose and allows them to bring their mortgage payments up to date.
Notice of Sale
If the homeowner fails to bring their mortgage payments up to date, the lender will send a Notice of Sale to the borrower. State law demands that the Notice of Default must be sent at least 21 days before a Notice of Sale is issued. The Notice of Sale must be posted at the county courthouse and filed with the county clerk. The notice must also state the date, time, and location of the foreclosure sale.
Foreclosure Sale
During the foreclosure sale, the property is sold at a public auction that usually takes place on the courthouse steps. Just like with other auctions, the highest bidder becomes the new owner. Borrowers should be aware that if the foreclosure sale does not sufficiently cover the outstanding debt, the lender may opt to pursue a deficiency judgment to recoup their losses.
Why Should I Hire a Houston Mortgage Foreclosure Attorney to Help Me Protect My Home?
The legal process involved with fighting a foreclosure sale can be overly complex and requires the help of a skilled mortgage foreclosure attorney. Working with a skilled attorney is the safest way to handle your case when trying to save your home or property. Because Texas favors non-judicial foreclosure sales, time is of the essence when seeking legal help so that your attorney can intervene.
Foreclosure attorneys are familiar with the legal intricacies involved with foreclosure laws and know what it takes to get results. For example, your attorney will review your mortgage documents, notice requirements, and all actions taken by the lender to identify any potential violations of the law or errors that can be used to halt the foreclosure proceedings.
Other actions that your attorney can take to prevent foreclosure include:
- Ensure that all legal paperwork is completed correctly and filed promptly to ensure that no procedural errors have occurred that could negatively impact your case
- Explore foreclosure defense strategies that could help stop foreclosure proceedings, including negotiating with the lender, repayment plans, loan modification, or forbearance agreements where the mortgage servicer agrees to postpone mortgage payments temporarily
- If the lender is unwilling to negotiate, your attorney can also explore other legal options, such as initiating a lawsuit that challenges the foreclosure sale
Can Filing for Bankruptcy Help Me Avoid Foreclosure?
Filing for bankruptcy triggers an automatic stay under federal law, which temporarily halts foreclosure proceedings. While this pause can provide immediate relief, it is not always a permanent solution. However, filing for Chapter 13 bankruptcy can offer a long-term way to avoid foreclosure by allowing the homeowner to catch up on missed payments through a court-approved repayment plan.
In a Chapter 7 bankruptcy case, the mortgage servicer may petition the court to lift the automatic stay. If the court grants the request, the foreclosure process can then proceed.
What Makes Your Law Firm the Right Choice to Help Me Protect My Home?
Kisch Law Firm, PLLC, is a law firm in the Greater Houston Area that is passionately committed to helping individuals protect their homes and properties. When you come to us for help, our skilled attorney will help to level the playing field by employing tested foreclosure defense strategies. Our legal team has extensive experience in assisting clients who are delinquent on their mortgage loans and navigating foreclosure proceedings.
If you need help with avoiding foreclosure, contact our law firm immediately at 844-417-6343 to schedule a free consultation. A qualified legal team member will gladly sit down with you to review your legal options.