Texas Foreclosure Process    |    Stop Foreclosure Options    |    Free Consultation

When options like a loan modification or short sale have been exhausted, the lender may proceed with the foreclosure process of taking your home away from you. While there are options available to stop a foreclosure, many consumers take what appears to the be cheapest option available without thinking about future consequences. Commonly consumer have three options to stop the imminent foreclosure.

Reinstatement of Loan Often the lender will ask that you make a payment that equates to a portion of what you owe to stop the foreclosure. Some consumers will borrow money from friends and family to take advantage of this offer. But after they make the payment they may not be able to stay caught up because the mortgage payment did not reduce. Unfortunately, they find themselves in the same foreclosure situation again.

Payoff of Loan You may have the ability to borrower from friends, family, or a hard money lender the amount to payoff completely the home. This would stop the foreclosure.

Bankruptcy One of the most common options taken by consumers facing foreclosure is filing a Chapter 13 bankruptcy. This may be a bad option for you depending on your circumstances. First, it may only temporarily stall of your foreclosure for 120 days or less. When you file a Chapter 13 bankruptcy, all the debts appearing on your credit report including the arrearages on your mortgage have to be paid in the plan PLUS your normal mortgage payment. A simple calculation you can do yourself is to add all the debts on your credit report plus the amount you owe the lender past due. Take this number and divide by 60 and multiply by 1.1. This is your monthly payment that you will make the Bankruptcy trustee PLUS your current mortgage payment. Can you afford this higher payment? If not, you will most likely lose your home in 120 days or less. Before filing a bankruptcy, ask yourself, what is going to happen in my life in the next 90 days that is going to allow me to keep my home?

File a Lawsuit Against your Lender Filing a lawsuit against your lender gives you the most possibilities for a better outcome at similar pricing of other options available. With the help of an experienced foreclosure defense attorney you can file a lawsuit against the lender raising many issues that have helped worsen your situation that the lender caused. After filing the lawsuit, your attorney will ask the judge to sign a Temporary Restraining Order (TRO). If the judge signs the TRO then the foreclosure is stopped. Your trial will proceed. Most cases will last 6 to 9 months at a minimum. This gives an attorney or yourself to take advantage of the options below.