Did you know that in 2012, there were 1.8 million U.S. properties with foreclosure filings? If you live in Texas and need foreclosure help, it’s never too early to start asking. Even if you’re not positive that you’re on the road to foreclosure, nipping the problem in the bud will be easier than dealing with it once there are actual notices issued and a strict legal timeframe you need to operate within. Here are our three tips for foreclosure help in Texas.
1. Mortgage Help Center
A mortgage help center can be a useful asset during this time, since, of course, paying off your mortgage- or not being able to- has the largest impact on your foreclosure proceedings. If you realize you are struggling financially, shift your priorities so that paying off your mortgage is your focus. Accumulating credit fees isn’t great, but the consequences won’t be so bad as what happens if you need to hand your home over to the bank. Lenders sometimes offer debt management programs and counseling you can take part of, since it’s in their best interest to help you juggle your finances better.
2. How Bankruptcy Affects Foreclosure
You might be thinking that mortgage foreclosure help could come in the form of filing bankruptcy. You would be right in that this move will give you some time; it will stall the foreclosure process by about four months. If the notice has already been filed, though, bankruptcy is not going to prevent the bank from taking your home. Your best bet is to file for bankruptcy before you start missing multiple mortgage payments. Chapter 13 is what you want to aim for in most cases, since Chapter 7 bankruptcy will sometimes involve giving up your home. Bankruptcy will not stop your payments; you will need to sign a reaffirmation agreement that continues your payments. Your mortgage debt will not be discharged.
3. Call Your Lender for Refinancing Options
Before you start missing payments, first talk to your lender. In most cases, they can try to work with you to re-structure payments or direct you to services so that you don’t have to come close to or cross the line to foreclosure. Refinancing can be expensive fee wise, but ultimately worth it if the interest rate is not too bad. In this case you should look to government sponsored refinancing options such as HARP, HAMP or PRA.
Do you need home foreclosure help?