Financial hardship can strike anyone at any time. You may experience a death in the family, loss of a job or medical issues. One of the biggest issues that most Texas homeowners face when they hit on hard times is how to pay for their mortgage. If they’re not proactive in communicating and working with the bank, then the homeowners open themselves up to having their house foreclosed upon.
A foreclosure generally happens when a homeowner falls significantly behind on making mortgage payments. There are different types of foreclosures, depending on whether a homeowner lives in a mortgage or a deed of trust state. Texas is the latter. Most jurisdictions either have judicial or nonjudicial foreclosure options in place.
It’s in mortgage states that judicial foreclosures take place. It’s in jurisdictions like these that lenders file suit against the borrower in civil court. The borrower is then served with a formal summons and foreclosure complaint. The next thing that happens is that a lis pendens, or lien, is placed on the property.
Courts will generally grant a judgment authorizing the lender to conduct a foreclosure auction. Buyers generally have up to the moment of sale to stop the foreclosure proceeding by repaying what they owe. The foreclosure process can take between four and eight months if no legal objections are raised.
The nonjudicial foreclosure process is used in deed of trust states like Texas. It’s in these jurisdictions that a third party, or trustee, can purchase the deed of trust. If the homeowner fails to repay their loan, then the trustee can assume interest in the property. They can generally initiate foreclosure proceedings in the county by filing a Notice of Default.
Borrowers are given a short period to either pay up or to object to the lender’s claim. Once that time has passed, the buyer cannot stop the foreclosure proceedings. A nonjudicial foreclosure can take up to 12 months to adjudicate.
If you are facing a possible foreclosure here in Tyler, that it can be a very scary time in either can be a very scary time in your life. You probably have a lot of questions and may not know where to turn to find the right answers. An experienced foreclosure attorney can provide you with the information that you need, especially when you find yourself struggling to make sense of the options available to you.