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Foreclosure & bankruptcy
Foreclosure
A property foreclosure is one of the most damaging events in a borrower's credit history. The damage will affect credit worthiness for 7 to 10 years.
In Texas, the foreclosure process is very fast. Depending on your lender, foreclosure proceedings may start as soon as 2 months after your first missed payment. The length of time from late payment to foreclosure varies by individual lenders.
Once you have missed payments, the lender will "accelerate" the loan, meaning that you have a certain amount of time to "cure" the loan by paying it off in full or "reinstate" the loan by paying your backpayments and all of the penalties. They will send you a "notice of default" with details about these options. They give you 30 days from the notice of default to "cure" the loan.
If you aren't able to pay off the loan or make up the payments, a notice of foreclosure will be filed. The notice must be sent at least 21 days before the foreclosure auction. You remain the owner of the property until the auction date. Auctions are held the first Tuesday of the month. At the auction, members of the public have the opportunity to bid on the property. Very few people bid because bidders do not have an opportunity to see inside the property and must have cash in hand.
Most often, the property goes back to the lender. Once the property goes to auction, the new owner will send an eviction notice. Some lenders will even offer you money to leave the place clean and undamaged.
We can help owners in any stage of foreclosure, but the closer to the auction, the more limited our options will be. Our preference is to buy your house with cash and close as quickly as possible - long before the auction date. Our preforeclosure program can help you save your credit even if you owe what your house is worth (or more).
If you are facing foreclosure, don't delay! We can help you and there is no fee or cost to you EVER for our services. Call 577-6049 or email us.
Bankruptcy
A foreclosure may be delayed if the owner files bankruptcy. Bankruptcy affects your credit negatively for 7 to 10 years and will not help you avoid foreclosure if you cannot make the payments, only to delay it. If you think you can catch up your payments quickly, bankruptcy may allow you to do so. Consult an attorney.
*We are not attorneys and cannot give legal advice. Information has been researched but is not guaranteed.
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