What Happens If I Don’t Pay My Mortgage in Texas?
When you fall behind on a payment or two, your lender will send you notice to pay and include late fees. When you purchased the house, you signed a promissory note (or promise to pay) and this will spell out your payments and penalties for default.
At This Point Don’t Put Your Head in the Sand !!
Talk to your mortgage servicer and discuss your options. You generally have a few months to make different arrangements that might be acceptable to your mortgage lender.
Your mortgage holder must wait until you are delinquent more than 120 days before giving you the first official notice of filing for foreclosure. At this point you are in pre-foreclosure
Letter of Demand
This letter will let you know
- You are in default
- Any remedies required to cure the default
- The date by which the default must be cured
- The consequences of failure to cure the default.
A Nonjudicial State
Texas is what’s known as a nonjudicial state meaning the mortgage holder can take back the property without going to court. Making it a simple and quick process and the reason you need to act quickly. Texas has one of the quickest foreclosure processes in the county.
Notice of Default
Within your 30-day demand letter, might also be your NOD (Notice of Default). This NOD will be posted at the courthouse, filed with the county clerk and will be public knowledge. The notice will announce the date and time of the sale on the courthouse steps. And yes, this is a public notice. It will have your name and address, along with your mortgage holder and any attorneys that might be involved at this point. The longer you let the pre-foreclosure go on the more you will owe in back payments, penalties, fees and attorney billing.
Foreclosure on the Courthouse Steps
Foreclosure sales are held on the first Tuesday of each month in your county. Your house will be sold to the highest bidder or go back to the lending bank and become an REO (Real Estate Owned) or bank owned property.
After the Foreclosure Your Troubles May Not be Over
After your home is taken back it may not be the end of your troubles. The foreclosing lender may seek a personal judgement against you for any loss realized in the sale of your home. In Texas the lender has up to 2 years to file suit.
Non-Redemption State
Texas is a non-redemption state. Meaning that once your home is foreclosed upon, you have no right of redemption; you cannot get your house back.
The new owner of the home now has the right to eviction. First with a 3-day notice and then an eviction lawsuit. When the court grants judgement, the sheriff will put a 24-hr. notice on your door. After the 24 hours, the sheriff will come to your house, remove all your belongings and you from the premises.
And There’s More Bad News
After a foreclosure, your credit will take a huge hit. Like an ‘atomic bomb’ to your creditscore will plummet amd can stay this way for years. This can affect you renting an apartment or buying another house, buying a car, obtaining a credit card, or even getting a job.
The take away…
Avoid foreclosure on your home at all cost.
Talk with your mortgage holder and see if you can work out a solution, early in the process.
Don’t bury your head in the sand…it will only get worse.
If, your mortgage holder has not more options for you, don’t just walk away. Contact a foreclosure specialist who can help you understand more of your options. If you’re stuck inn the sand we have shovels.
Give us a call 361-659-1943 or email us at info@happyhearthomes.com
Working with us can actually save and improve your credit!!
Ask if you qualify for our $1000 Visa card with your name on it when we buy your house!!
For additional information on our website visit: How to Stop Foreclosure