Fighting a Texas foreclosure

On Behalf of | Apr 27, 2016 | Bankruptcy |

Texas residents who are facing foreclosure have a number of options when dealing with this situation. By learning about their rights and which options are available in their particular situation, they can make more informed decisions about how to proceed.

Since 2012, when 16 million American homeowners were facing foreclosure, the number of people in danger of losing their homes has dropped considerable. However, for many families, foreclosure is a real threat. Filing for Chapter 13 can help prevent the lender from seizing the home and allows debtors to work out a repayment plan that can provide for back payments to be caught up over a period of up to five years. The act of filing will also put an end to harassment and collection activities from other creditors as well.

Other options may be available based on the particular circumstances. For example, refinancing can often help reduce loan payments by reducing the interest rate or extending the term of the loan. Loan modification allows the debtor and lender to reach a new agreement regarding the debt to make it more affordable. Selling the home may be another option to help a debtor avoid foreclosure. Sometimes a lender will allow a person to voluntarily provide it with a deed in lieu of foreclosure.

Perhaps the first step to take is to schedule a meeting with an attorney who has experience with these types of matters. With legal assistance as well as that of a foreclosure prevention counselor approved by the U.S. Department of Housing and Urban Development, lines of communications can perhaps be opened with a lender that can lead to a negotiated solution.