Most Americans today are only a few unexpected expenses away from serious financial hardship. Unforeseen illness, unemployment, mounting debt, and divorce can lead to missed mortgage payments and the looming threat of losing a home to foreclosure. At Tag Team Property Solutions, we understand that this can be overwhelming and stressful. If you’re in or nearing the foreclosure process, the good news is; you have options! Here is everything you should know.

What is foreclosure?

Foreclosure happens when a homeowner fails to make mortgage payments, leading the lender to take legal action, seize the property, and sell to recover the loan amount. The process can be emotionally and financially devastating, impacting credit scores and future financial stability. 

The foreclosure timeline

In Texas, the foreclosure process can move quickly and is usually triggered by 3 or more months of missed mortgage payments. At this point, you’ll receive a Notice of Default, which is a written notice allowing you 20 days to “cure” the defaulted loan (pay in full the amount owed). Within 6 months, it can proceed to the sale of your property at an auction, which is why it’s important to move quickly. Explore all options with your lender and with local professionals as soon as possible to avoid losing your home. 

How can I stop foreclosure in Texas?

In Texas, you have the ability to talk with your lender and seek alternatives that may help save your credit and avoid foreclosure. These can include:

1. Paying your past due payments: Once you’ve been served a Notice of Default, you legally have up to 20 days to pay in full the amount that is past due on your mortgage.
2. Modifying your loan terms: A loan modification adjusts the original terms of your loan with your lender. If approved, the new terms could result in a temporary or permanent change to the monthly payment, term, or rate that could make your monthly payments more manageable.
3. Forbearance: This is a temporary agreement that a lender will not begin foreclosure while your payments are temporarily reduced or suspended.
4. Arranging a repayment plan:  This is a temporary agreement that a lender will not begin foreclosure while your payments are increased to make up for previously missed payments. If you don’t foresee any improvement in your ability to make monthly payments, you probably should pursue a different alternative.
5. Deed-in-lieu of foreclosure: This involves turning over your home to a lender voluntarily to avoid foreclosure proceedings. Before you get a deed-in-lieu of foreclosure, ask your lender if it will waive any deficiency, which is the difference between your home’s value and what you still owe on the mortgage. (If there is a deficiency, the lender could seek a judgment to try to collect even after you’re out of the home.)
6. Selling your home: Know your finances and what you owe. If the sale proceeds would pay off the mortgage, this is a great option to permanently stop or avoid the foreclosure process.

Can I sell my house if it’s already in foreclosure?

Yes! The foreclosure process is typically not complete until the bank sells your house at auction, or takes legal possession of it. Until then, you can still sell your house, potentially keep more money in your pocket, and end foreclosure proceedings by paying off your lender.

However, depending on your timeline, you may not have time to sell the traditional way. In the time it takes to hire an agent, get the house appraised and ready for showing, list the house, show the house to buyers, negotiate terms, accept an offer, and close on the sale, it might be too late. That’s where local cash buyers like us come in! 

Tag Team Property Solutions is an experienced and highly recommended local cash home buyer. We’ve helped homeowners across Texas sell their houses fast to avoid foreclosure, and understand that the process can be overwhelming and stressful. That’s why we’re here to offer a solution and make the process quick and hassle-free for you.

We buy houses in foreclosure for cash!

At Tag Team Property Solutions, we buy houses at every step, from pre-foreclosure to just before the foreclosure sale. Our fast process can help you avoid foreclosure, even if you only have weeks or days left to settle with your lender. Typically, you’d pay 6% of the sales price in realtor commissions when you sell the traditional way. We don’t require any commissions, can close quickly, and will buy your property as-is with cash.

Why selling to a cash home buyer may be a good option:

1. Speed and Certainty: Cash buyers are investors or individuals who have the funds readily available to purchase properties without relying on traditional mortgage financing. That means that there’s no need for lengthy bank approvals and appraisals. 
2. Avoiding Foreclosure Proceedings: Selling your house to a cash buyer before foreclosure proceedings are finalized can prevent the damaging effects on your credit score, which can disqualify you from obtaining new loans or even renting a new home.
3. Selling As-Is: Cash buyers will usually purchase properties in their current condition, which means that you can skip the cleaning and repairs. We’ve bought houses with foundation issues, major repairs needed, taxes owed, squatters on site, hoarder situations, and much more.
4. Flexible Terms: Cash buyers usually have more flexible terms compared to traditional buyers, accommodating specific needs such as a quick move-out date or leaseback options. 
5. Certainty of Sale: Traditional home sales can fall through due to buyer financing issues or inspection contingencies. Selling to a cash buyer provides more certainty that the sale will proceed as planned.

Important considerations

Remember, every situation is unique, but one thing for certain is that if you are dealing with foreclosure, you’ll want to move quickly. With careful planning and the right support, you can navigate this challenging time and move forward towards a more stable financial future.

Here are some things to remember:

• Review Your Finances: Know your equity, how much you owe, and
• Contact Your Lender: Reach out to your mortgage lender immediately. Sometimes, lenders may be willing to work with you to modify your loan terms, arrange for a repayment plan, or explore other alternatives to foreclosure.
• Stay Informed: Keep ahead of deadlines and requirements set by your lender and local foreclosure laws to avoid potential complications.
• Beware of Scams: Beware of foreclosure rescue scams that promise to save your home for a fee. If you decided to work with a cash home buyer, make sure they are legit by checking credentials and reviews across multiple platforms (Google, the Better Business Bureau, and even Facebook). Cash home buyers likely purchase homes on a regular basis, so be sure to ask what Title companies they typically work with and research their purchase history.

Let us help you avoid foreclosure and sell your Texas house fast. Please call us today at (210) 419-1675 or contact us online for your FREE, no-obligation consultation. We look forward to working with you!