Understanding the Foreclosure Process in Central Texas

Understanding the foreclosure process in Central Texas is an important part of navigating your own home foreclosure.

Before we dive in…

Understanding the Foreclosure Process in Central Texas

What is foreclosure anyway?

Foreclosure is the legal way lenders take back a property when the borrower stops making payments.

Foreclosure is tough, but it’s not the end of the world.

Understanding how foreclosure works in Central Texas gives you the knowledge to handle it well and come out in the best possible shape.

The Basic Stages of A Foreclosure

There are a few key stages in any foreclosure process.

Foreclosure works differently in each state.

There are two main ways states handle foreclosure: judicial sale or power of sale.

Call us at 512-230-3469 or visit our contact page to learn about the foreclosure process in Central Texas.

Usually, foreclosure doesn’t go to court until 3-6 months of missed payments. Most of the time, the lender will send multiple notices that you are behind on payments.

Under Judicial Foreclosure:

• Your mortgage lender has to file a lawsuit in court.
• You’ll receive a letter from the court asking for payment.
• If the loan is valid, you have 30 days to make the payment to avoid foreclosure (sometimes this period can be extended).
• If you don’t pay within this time, the court will issue a judgment, and the lender can ask to sell your property, usually through an auction.
• After the property is sold, the sheriff will give you an eviction notice, and you’ll have to leave the property immediately.

Under Power of Sale (or Non-Judicial Foreclosure):

• The mortgage lender sends you papers demanding payment, and court involvement isn’t always required, but it may be reviewed by a judge.
• After the waiting period, a deed of trust is created, transferring control of your property to a trustee.
• The trustee can then sell your property to the lender at a public auction, with notice given beforehand.

Anyone with an interest in the property must be notified during the foreclosure process.

For example, contractors or banks with liens on the foreclosed property have the right to collect from the auction proceeds.

What Happens After A Foreclosure Auction?

After a foreclosure, the loan is paid off with the money from the sale.

If the sale doesn’t cover the full loan amount, the lender can get a deficiency judgment against the borrower.

A deficiency judgment means the borrower must pay the remaining amount owed after the foreclosure sale.

Some states limit this amount to the fair value of the property at the time of sale, while others allow the full loan amount to be charged.

Here’s a helpful resource listing the deficiency judgment laws for each state, as they differ.

It’s usually best to avoid a foreclosure auction. Instead, call the bank or work with a reputable real estate firm like us at LJE Property Solutions Buys Houses. We can help you negotiate discounts on the amount owed and avoid foreclosure.

Experienced investors can negotiate directly with banks to reduce or even eliminate the amount you owe, even if your home is worth less than your loan.

If you need to sell a property near Central Texas, we can help.

We buy houses in Central Texas from people who need to sell quickly.

Give us a call anytime 512-230-3469 or
fill out the form on this website today! >>

Another Foreclosure Resource For Central Texas Home Owners:

• Resources On Avoiding Foreclosure from the U.S. Government >>

Frequently Asked Question
Maybe you have a few questions. That’s okay; most people do. So, are some questions people ask us… along with our answers. If you still have a question, don’t hesitate to contact us (or give us a call) and we’ll be happy to answer it for you.

Q: Do you pay fair prices for properties?
A: Yes, we pay fair market value for the condition of the property. Don’t forget, you wont be paying any real estate fees or have to do any repairs. The large expense for both of those items falls on us. No time or effort or expense is required on your part of fix up the property or pay agent fees. We have to make sound investments to be able to put out a large amount and still be able to make a profit in the end. If that’s what you’re looking for and you see the value in getting your house sold fast… let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)