While we try to avoid it, sometimes home mortgages are foreclosed on. If this happens, it may feel like there is no chance of saving the home or getting out of the foreclosure with compensation. However, with the right strategy and without a real estate agent, we can help save a foreclosure at the last minute.
If you’re in this position, don’t fret. This article will give you the tools and knowledge you need to understand how to stop a foreclosure at the last minute on your Houston home.
Can I Stop a Home Foreclosure?
There are a number of reasons for facing foreclosure. At the core of it, the borrower is unable to pay their home mortgage for some reason. Other reasons include unpaid property taxes and a lien placed against the house, or natural disasters such as a house that floods. Believe it or not, an HOA owed money can even initiate a foreclosure.
Luckily, even if your home enters into the foreclosure process, you still have options. Yes, you absolutely can stop a foreclosure from happening before the official sale happens. A pending foreclosure, even a foreclosure with a due date, can be stopped with a mortgage payoff using PPS Home Buyers, or a short sale.
Will I Lose My Home If It Enters Into Foreclosure?
Foreclosure proceedings occur when the homeowner is unable to pay for their home mortgage and fall behind. If a home mortgage is foreclosed on, then the homeowner will lose the house and it will be sold at a public auction. All equity will be lost.
However, there are a number of ways that you can save your home or get money for your home, including getting a loan modification to bring your mortgage payment up to date.
How Long Do You Have With a Foreclosure?
How long you have to stop foreclosure depends on how early you take action.
What are the Six Phases of Foreclosure?
There are 6 phases of foreclosure:
- Payment default
- Notice of default
- Notice of trustee’s sale
- Trustee’s sale
- Real estate owned (REO)
Once you have a missed payment past 90 days, the borrower gets a foreclosure notice or notice of default. This is a public notice that gives the borrower 30 days to remedy the past due amounts before the formal foreclosure process starts.
If the amount is not remedied, then the home will go to trustee sale, usually in a nonjudicial foreclosure. In this case, the borrower would get a notice of trustee’s sale.
Unfortunately, nonjudicial foreclosures can move rather quickly, leaving little time for a homeowner to stop a foreclosure. Foreclosure auctions can happen as quickly as 2 to 3 months after the notice of trustee sale or after the notice of default. You’ll need to act before you get to this point.
How Long Does it Take to Stop a Foreclosure?
The length of time it takes to stop a foreclosure will depend on the team you have on your side. Luckily with PPS Home Buyers, we buy houses fast. We can finalize a home buy-out and stop a pending foreclosure if you reach out in time.
Our process is simple: we quickly sign a purchase agreement with the seller and show that to the mortgage company. They then agree to the payout, which allows us to go through with the title process. Our title team only takes 24 hours to turn around a new title. In most cases, we can close a pending foreclosure in less than a week!
When Is It Too Late to Stop a Foreclosure?
While more time is helpful to stop a foreclosure, our expert team at PPS Home Buyers can stop a foreclosure sale that is less than a week away. These factors will depend on the availability of the mortgage company. Until it’s gone to the foreclosure sale, it’s never too late for foreclosure prevention tactics. It’s best to act early in the process if you intend to sell your house before foreclosure occurs.
Quick Ways to Stop a Foreclosure at the Last Minute
There are many ways to stop foreclosure. In essence, the borrower needs to get their account current (prior to the notice of trustee sale) or have the house bought out. But there are other options.
Homeowners who want to keep the house can file for chapter 13 bankruptcy, which allows them to pay outstanding debts through a structured monthly payment plan. Some lenders will allow homeowners to modify the loan; loan modification and mortgage modification are highly unlikely options after the notice of the trustee’s sale.
Another option is getting a deed in lieu of foreclosure; this gives the lender ownership of your home through a short sale but it will hurt your credit score.
If your lender is using a nonjudicial foreclosure, you can file a lawsuit against them to halt the foreclosure and challenge the process. This doesn’t work for judicial foreclosure proceedings.
The above is not legal advice, just some helpful info. You should speak with an attorney if that is the route you wish to go. However, we can recommend a better option!
Or, you can sell your house quickly. Luckily there are smart firms out there like us at PPS Home Buyers who are skilled at buying a house that is going to foreclosure. Homeowners who are struggling won’t have to deal with lawyers, problematic foreclosure processes, or lengthy selling processes. At PPS Home Buyers, we buy your foreclosed home extremely quickly (it can be as little as 1 week) and you can move forward with your life.
What to Do If Your Home is Pending Foreclosure
If your home is pending foreclosure, you’ve been denied a loan modification, and you’re in the Houston Texas area, then you’ll want to reach out to PPS Home Buyers for a cash offer. When you work with us, then you don’t have to file for Chapter 13 bankruptcy.
Instead, you avoid all that and avoid the foreclosure sale and go with a short sale for cash. We offer foreclosed homes a quick cash offer through a mortgage buyout. We do all this for you, and we make this whole process far easier. We can buy your home even if there is a lien on the property.
The sooner you call us, the faster it is over with. If you don’t yet have a foreclosure date, then we know that we have more time to stop the foreclosure process. In this case, we’ll need time to call your mortgage company and order a payoff.
Unfortunately, it takes a few days for the mortgage company to get the payoff. If we get your case early enough, then we can more often than not stop the foreclosure. There is also the chance that we can forward a purchase agreement between us and the seller to your mortgage company to confirm that we at PPS Home Buyers are in the process of buying the home to pause the pending foreclosure process.
The good news is that the mortgage company would rather sell the house than foreclose and move it to a public foreclosure auction. So once they agree to a payout, we can move quickly and give you money for your house (as opposed to nothing through the public auction).
Our team has expert title offices to rush the title process within 24 hours. This allows us to close your foreclosure as soon as possible!
Get Money For Your Foreclosure House Before It’s Finalized
Luckily borrowers have a number of options for saving their house before a foreclosure is finalized. With PPS Home Buyers, we offer a safe and hassle-free method.
We are cash buyers who always have the available funds on hand to purchase your foreclosed home outright and right away. We can even buy your home if it needs work and has deferred maintenance.
With this option, your mortgage lender will still get paid (and they will get paid more than at a public auction) and you get a cash offer. This is far better than your home going to foreclosure or selling your home as-is.
With PPS Home Buyers, we offer you safe, fast, and simple cash offers that can close within a week. Reach out today to learn more.