Foreclosed homeowners getting second chances

| Oct 1, 2015 | Foreclosure |

Homeowners in Texas who are having financial problems are often worried about what will happen to their residence. In some cases, mortgage payments become overwhelming and there is concern that the bank may foreclose on the loan.

Foreclosure is a real risk in situations when a family has lost control of its finances. In addition to the loss of the home, there can be significant credit implications for the borrower that can take years to resolve. As a result, some people have found it difficult to reestablish credit or find a new home to live in after foreclosure.

There have been some changes, however in how mortgages are handled after foreclosure. The FHA is making home loans more available to those who have had foreclosures in the past. Some lenders are also willing to work with individuals who had a home foreclosed on a few years back. Most people, however, usually wish to avoid foreclosure. They would prefer to stay in their family home, and don’t want another black mark on their credit report. Even if they are able to purchase a home a few years later, most would rather maintain some stability during a financial crisis. This includes not losing a home and then scrambling to find new housing in the midst of financial challenges.

People who are worried about a potential foreclosure may want to meet with a bankruptcy attorney to discuss their options. Legal counsel may be able to evaluate their situation and recommend strategies for saving the client’s home. In some cases, filing for bankruptcy can put at least a temporary halt to pending foreclosure proceedings.