Avoiding Foreclosure In Texas: How To Keep Your Home

If you have found yourself in a tough spot and you’re looking into how to stop a foreclosure in Texas, luckily there are a few actions you can take to halt the process. 

There is still a chance for you to keep your home permanently, prevent the blemish of a foreclosure on your credit history, or put off the procedures long enough to get a grip on your mounting debt that is spinning out of control. 

Retake control of a difficult situation even after the foreclosure proceedings have started on your house with long-term to last-minute loss mitigation strategies. Find more about avoiding foreclosure in Texas by reading on.

What Does It Mean If Your House Is In Foreclosure?

A bank or mortgage company can legally take back a house that has fallen behind on its payments via a foreclosure procedure.

A foreclosure in Texas occurs when a lender auctions your home to satisfy an outstanding obligation.

Despite the fact that your loan becomes late the moment a payment is missed, federal law requires your lender to wait 120 days before an official notice is mailed or before starting the foreclosure process.

If you do not explore ways to stop foreclosure immediately, the lender will seize and auction your house to collect your debts. 

The Foreclosure Process 

Can you stop a foreclosure in process? The law requires your lender to present you with a grace period of at least 20 to 30 days, during which time you may make up any late payments before initiating the foreclosure process against you. You may refer to this as the notice of default and intent to accelerate.

This letter will say how much you owe and when you need to pay to keep the house from being taken away. During this time, your home is in pre-foreclosure. 

Can a foreclosure be stopped? You still have time to stop foreclosure in Texas by getting caught up on your loan payments, selling your home, or working something out with your lender.

Your lender will send you a notice of sale if you don’t pay your debt within the grace period. Your lender will mail this written notice at least 21 days before the foreclosure sale. The notice will also be put on the door of your county courthouse and filed with the county clerk. It will say when, where, and what time the sale is.

At the county courthouse, foreclosure sales are held on the first Tuesday of every month from 10 a.m. to 4 p.m. You may not be able to stop the foreclosure auction immediately as your property will go to the person who will be ready with the most money at the sale. Your lender might also put in a bid for the house. If they are the highest bidder, the bank will take back ownership of the house, and it will be known as Real Estate Owned (REO).

In some situations, you might still owe money to your lender after foreclosure in Texas. This happens when the amount you owe on your mortgage is more than what your house sells for. In this case, your lender might sue you to get the difference back.

In Texas, the bank has two years to file a separate lawsuit against the owner for the deficiency if the owner gave up the property without going to court. If the bank gives up or loses the case, they won’t be able to get the rest of the money.

You might be asking: can I save my house after the foreclosure sale? In many states, you have more time to pay off your debt, but the foreclosure process in Texas moves very quickly. Most of the time, your property’s final sale happens about six weeks after your notice of default.

Options For Avoiding Foreclosure

Repayment Plan

If you ask for a repayment plan, your lender will craft a customized solution just for you. You may add missing payments to your regular mortgage payments until you catch up. When a temporary lack of income or unanticipated costs prompts you to miss payments, a repayment plan might help.

Forbearance Agreement

You will reduce or pause your monthly mortgage payments in a forbearance agreement. You will still owe the difference at the conclusion of a forbearance period, so if you have a long-term loss of income or can’t save enough, this may not be the best option.

Loan Modification

A loan modification is aimed to benefit you now and in the long run by modifying the conditions of your mortgage, such as extending the term or decreasing the interest rate. Unfortunately, loan modifications affect your credit by looking as a debt settlement, which shows you didn’t fulfill your loan conditions. If possible, refinance before falling behind on payments. Before agreeing to a mortgage modification, consult a debt management lawyer.


Bad credit from late payments or a looming foreclosure makes refinancing harder. Your lender may add the missed payments to your loan total and recalculate your monthly payments if you have enough home equity.

You may start again if you refinance and pay off your previous debt. All states let you refinance your mortgage until the foreclosure sale. Some states allow post-sale redemption.

Special Workouts For Government-Backed Mortgages

Your lender or the government organization that guaranteed your loan may likely provide you with foreclosure assistance in Texas and alternative means of foreclosure prevention. You may also contact a counselor for HUD loans in Texas regarding foreclosure avoidance.

Stopping Foreclosure Once It Has Started

Sell Your Home

Can you sell a foreclosed home? Many people who are facing foreclosure benefit from contacting a cash buyer.

A cash buyer may relieve the burden by buying your house quickly, allowing you to move on. For more information about selling a home in foreclosure, click here.

Deed In Lieu Of Foreclosure

You may be able to voluntarily return your house to the lender to avoid foreclosure in Texas and avoid credit damage. Like a short sale, you want your lender to waive the deficit. This may seem like a good alternative when you have a mountain to climb to pay off your mortgage, but don’t give up your house until you’ve exhausted all other possibilities.


Filing for bankruptcy will postpone foreclosure, but it won’t wipe clear your lien or let you remain in the house without payments. Chapter 13 bankruptcy reorganizes debts over time, saving the house. Chapter 7 bankruptcy is a liquidation that may postpone a foreclosure but won’t save a home behind on payments.

Leave a Reply

Your email address will not be published. Required fields are marked *