Are you currently facing the threat of foreclosure in the state of Texas and wondering how to halt this process before it’s too late?
The prospect of losing your home can be overwhelming, but there are effective strategies tailored to Texas residents that can help you navigate the situation successfully. Let’s explore some of the fastest and most effective solutions for Texas homeowners like yourself who are facing foreclosure.
How To Stop Foreclosure
The steps you take to stop a foreclosure depend largely on where you are in the process with your lender. You may be asking, “Can I stop a foreclosure by paying the past-due amount?” — and the answer is, “maybe.”
If the bank is sending notices that they intend to foreclose unless you bring payments current, that’s different from receiving a final notice that they will foreclose on a specific date. In any case, the sooner you act, the better. Here are the most immediate actions you can take when you need to stop a foreclosure fast.
How to Stop a Foreclosure Auction Immediately
1. File for Bankruptcy
The fastest way to stop the foreclosure process is to file for bankruptcy.
When you file, the court issues an “automatic stay,” which puts the foreclosure on hold. While your lender can request that the court lift the stay, even if approved, it typically takes a few months to go into effect — buying you valuable time. If the lender doesn’t request the stay to be lifted, the hold can last through the entire foreclosure process, often up to four months.
Risks of Filing for Bankruptcy
- You may not be able to file again for a certain period.
- Your credit score will take a major hit for at least seven years.
- Future credit often comes with higher interest rates and stricter terms.
Different Types of Bankruptcy
There are two primary types of bankruptcy to consider: Chapter 13 and Chapter 7.
Chapter 13 Bankruptcy
Chapter 13 allows you to keep your home by reorganizing your debts under a structured repayment plan lasting three to five years. This plan may include partial or full repayment of various debts and can even reduce or eliminate unsecured debts, such as second or third mortgages.
This strategy is ideal if you want to save your home and regain control of your financial situation while catching up on missed payments.
Chapter 7 Bankruptcy
Chapter 7 provides a temporary pause on foreclosure, allowing you to remain in the property without immediate payment obligations. This gives you time to plan for alternative housing or negotiate with your lender.
Even if foreclosure eventually proceeds, Chapter 7 can discharge your personal liability for the mortgage debt — meaning you won’t owe any remaining balance after the property is sold.
Note: If you filed for bankruptcy within the past year, the automatic stay may be limited to 30 days or lifted entirely.
2. Apply for a Loan Modification
A loan modification is when you work with your lender to change the terms of your mortgage so the payments become more manageable. This might include lowering the interest rate, extending the loan term, or even reducing the principal balance.
It’s best to apply for a loan modification before foreclosure begins, but it’s still possible to do so even late in the process. Once approved, the foreclosure will stop — as long as you remain current on the modified payments.
3. Sue Your Lender to Stop Foreclosure
In some cases, you can file a lawsuit against your lender to stop the foreclosure — particularly if the process is non-judicial (handled outside of court).
However, this approach can be expensive and risky. You’ll carry the burden of proof and must demonstrate that the lender:
- Did not follow required Texas foreclosure procedures
- Violated the Texas Homeowner Bill of Rights
- Cannot prove ownership of the promissory note
- Failed to meet mediation or notification requirements
- Made other serious procedural errors
4. Consider Selling Your Home
We understand that keeping your home is your priority — but sometimes, selling is the most practical solution.
If you’re unable to catch up or modify your loan, selling your home can help you avoid the financial and emotional damage of foreclosure. By selling directly to a trusted cash buyer like Westoak Homes, you can close quickly, receive a fair offer, and stop the foreclosure process before it goes any further.
How to Stop Foreclosure in Texas
When it comes to foreclosure, timing is everything. Acting quickly gives you more options and better results.
If you live in Texas and are facing foreclosure, contact Westoak Homes today for a free, no-obligation consultation. We’ll walk you through your options, answer your questions, and help you make the best decision for your situation.
You don’t have to go through this alone — Westoak Homes is here to help you find a solution and move forward with confidence.