Mesquite, Texas, is thriving, with thousands of new homes being built and a major boost in development and business expansions. However, with inflation continuing and a slightly higher property tax rate than the average for Dallas County, losing one’s home is a real threat for some homeowners.
If you’re facing the loss of your home in Mesquite, understanding the process and taking proactive steps can help you keep it. We’re here to guide you through the process and offer strategies to prevent this challenging situation.
Understanding the Foreclosure Process
Foreclosure has certain implications and specific procedures. Your lender might take legal action against you if you miss too many installments to recover their investment. This action could result in the loss of your home through an auction, eviction, and a damaged credit score.
Non-Judicial Foreclosure
This type of foreclosure doesn’t go through the court system and is only possible if the deed includes a “power of sale” clause. It’s often preferred as it’s quicker, typically taking about six months to a year from the first missed payment to the sale settlement.
Judicial Foreclosure
This process is less common as it goes through the court system after a lawsuit is filed against the homeowner. It’s only an option if the deed doesn’t have a “power of sale” clause, so most creditors try to avoid it.
Key Timeline
Once you’re in default, the lender can take the following actions:
First Missed Mortgage Payments
Lenders can technically start proceedings after the first missed payment. However, most creditors give a 10-15 day grace period before charging a late fee.
Second and Third Missed Payments
By the second and third missed installment, you’ll start receiving calls and letters from your lender. They usually try to get you to pay during this time rather than jumping straight to legal action.
Pre-Foreclosure Loss Mitigation Review Period
Under federal law, lenders must wait 120 days from the first missed payment before sending the first official foreclosure notice. If you don’t pay during this time, they can then file a lawsuit.
Breach Letter
The process begins with a breach letter from your creditor, which tells you about the missed installments. You have 20-30 days after receiving this letter to resolve any missing installments.
Notice of Sale
At least 21 days before the foreclosure sale, the creditor must send a notice of sale to the borrower and the county courthouse and file it with the county clerk.
The Foreclosure Sale
Foreclosure sales happen through a public auction, where a certified trustee sells the house to the highest bidder. In Mesquite, these auctions happen at the local county courthouse on the first Tuesday of each month.
After the Sale
If the sale doesn’t cover the property loan amount, the lender can seek a deficiency judgment against the borrower. Texas has no statutory right of redemption after a non-judicial foreclosure, meaning the creditor cannot reclaim the property once it’s been sold at auction.
How to Avoid a House Foreclosure in Mesquite, TX
In most cases, there are several strategies you can follow to avoid foreclosure. For more information on the process for each option, contact a HUD-approved counselor or legal assistance office.
1. Temporary Restraining Orders (TRO)
A Temporary Restraining Order (TRO) is often utilized when selling a house to an investor. It provides immediate relief but is a complex, expensive, and temporary solution to stop foreclosure. You’ll need to file a lawsuit in court and demonstrate a valid reason for the delay.
2. Deed in Lieu of Foreclosure
Another option to consider is a deed in lieu of foreclosure, where you willingly transfer ownership of your home to the bank. While this can help you avoid the lengthy and expensive process, it can also lower your credit score.
3. Loan Modification
Lenders can modify the terms of the original loan agreement by adding any late fees and accrued interest to the back of the loan. Other options include lowering the interest rate, extending the repayment plan, refinancing the loan, or converting an adjustable-rate mortgage (ARM).
4. Repayment Plans
To avoid foreclosure, your loan servicer can help divide missed payments into manageable amounts added to your regular monthly installments without straining your finances. Work out a good plan with your lender by being honest about your financial situation, suggesting a realistic payment schedule, and making sure you both agree on the terms.
5. Forbearance Agreements
Lenders can temporarily reduce or postpone your loan installments. After the set period, you can resume regular installments, make a lump sum payment, or spread out extra payments.
6. Bankruptcy
To declare bankruptcy, you’ll need to hire an attorney and let them know about your situation. Filing Chapter 7 or Chapter 13 bankruptcies can halt proceedings. Speak to a qualified person to find out which option you qualify for.
7. Sell Your Home Quickly
Selling your home in Mesquite to a real estate investor or cash buyer is helpful if you’re in a tight spot. To succeed with a short sale, set a competitive price, make necessary repairs, and declutter. Use professional photos and market your home on social media and real estate sites.
Legal Assistance
The real-life example of Finda Koroma confirms that obtaining legal help to avoid foreclosure is essential. A foreclosure attorney or your state’s housing counseling agency can be valuable resources, providing important information and guidance tailored to your situation.
Conclusion
Facing foreclosure can be tough for a homeowner, but with good planning and timely action, you can navigate the situation. Consider strategies like loan modifications and repayment plans to make your financial responsibilities more manageable. Remember, you’re not alone; many resources are available to assist you. By being proactive and informed, you can find a way to keep your home and secure your financial future.
Contact A-List Properties today to sell your house fast and avoid foreclosure. We’re dedicated to assisting homeowners with cash offers and solutions tailored to their unique circumstances.
Zach Shelley
Zach Shelley is a seasoned real estate investor with a diverse network spanning across the nation. As the founder of his own real estate venture, Zach is committed to offering innovative solutions to homeowners facing various real estate challenges.. Through his dedication and strategic approach, Zach continues to make a significant impact in the real estate industry, providing homeowners with alternative pathways to navigate their property transactions.
