If you have gotten a letter in the mail that you are facing foreclosure.  Sit down, take a deep breath and let’s work through this.  First of all, there are many options available to you to stop the foreclosure.  Unfortuntately, time is not on your side.  You need to act quickly!  In Texas, foreclosures are only held once a month, always on the first Tuesday of each month.  Your mortgage company is required to give you 21 days notice of the sale.  As you can see, this is not much time.  So let’s talk about your options:

1.   Forebearance/Workout;

2.   Pay the amount you are behind along with the fees that have incurred to your mortgage company;

3.   Chapter 13 Bankruptcy.

Forbearance/Workout:

In the last couple of years the opportunity to negotiate a pre-foreclosure workout has improved.  With the number of foreclosures rising daily, reputable mortgage companies are starting to see the benefit of doing a forbearance/workout instead of foreclosure. 

The process of offering a forbearance/workout is to call your mortgage company and see if arrangements can be made to stop the foreclousre and to offer a repayment plan  that you can afford to pay.  If you can’t afford to pay the repayment plan that the mortgage company is offering, i.e. they want you to pay so much up front and pay the remainder of what you are behind out over 6 months plus your regular mortgage payment, don’t despair!   You  should consider filing a Chpater 13 Bankrptcy.  In most instances, you will be allowed to pay the amount you are behind to your mortgage company over a 5 year period.

Pay the amount you are behind:

For most, this is not a viable solution.  But if you can pay the amount you owe plus the fees that the mortgage company has charged, then this is the best alternative.

Chapter 13 Bankruptcy:

Chapter 13 Bankruptcy should be considered if you cannot offer a forbearance/workout that your mortgage company will accept or for a myriad of other reasons.  Please click here to learn more about Chpater 13 Bankruptcy.