What is foreclosure?

Foreclosure is a legal process in which a homeowner fails to make payments on their mortgage and the lender takes ownership of the property to recover the remaining loan balance. In Texas, if a homeowner misses more than one mortgage payment, the lender can file a notice of foreclosure with the county clerk. This notice informs the homeowner of the foreclosure and allows them the opportunity to pay off the loan or could result in the lender taking the home to sell in the real estate market. The foreclosure process can occur quickly in Texas, usually taking less than three months from the date the lender files the foreclosure notice to the date the home is sold. If the homeowner does not take any action, the lender may repossess the home and sell it in a public auction or to a third-party buyer. If the proceeds from the sale are less than what is owed on the loan, the homeowner is responsible for the remaining balance. Foreclosure can be an emotionally and financially devastating experience for the homeowner. In some cases, lenders may be willing to negotiate a loan modification with the homeowner in order to avoid foreclosure. Homeowners should contact a qualified attorney as soon as possible to discuss any available options to avoid the foreclosure process.

Related FAQs

What type of notice is required before a foreclosure sale?
What is a cash for keys program?
Can a lender foreclose on a rental property?
What is a deficiency judgment in a foreclosure?
What is a foreclosure defense attorney?
Can I transfer ownership of my home to avoid foreclosure?
What is a deed in lieu of foreclosure?
How does the lender recover legal fees and costs in a foreclosure?
What happens to the homeowner's equity in a foreclosure?
Can the lender continue to collect late fees and interest during a foreclosure sale?

What is foreclosure?

Related FAQs

Related Blog Posts