It’s easy to fall behind on your mortgage payments.  Texas, however, makes it very easy for mortgage lenders to pre-foreclose on borrowers who have defaulted on their obligations.  It is important to know how to stop pre-foreclosure in Texas if you have fallen even slightly behind on your payments, because it can take as little as 60 days from the time you miss a payment in Texas to the time you are evicted from your now - sold foreclosed home.  This guide will explain how to stop pre-foreclosure in Texas before your house is sold and your credit is shattered.

The reason that Texas is such a bad state for pre‑foreclosed borrowers is that the pre-foreclosure process “non-judicial.”  When courts are involved in pre‑foreclosures, the judicial hearings and notice often take months, giving borrowers plenty of time to figure out a solution other than pre-foreclosure. Texas, however, does not require courts to be involved in a pre‑foreclosure at all.  Your lender is authorized simply to sell your house house if you do not make payments.

It can be harder to know how to avoid pre‑foreclosure in Texas than in a judicial state.  You definitely have fewer options.  Generally, there are three sources you should think of first when trying to figure out how to stop pre-foreclosure in Texas: your lender, the Department of Housing and Urban Development (HUD), or an attorney.

Homeowners who are hoping to stop pre‑foreclosure often dread dealing with the facts that got them to the place of being in pre‑foreclosure. Dealing with those facts can be depressing. If they think back to when they first bought that home, losing the home was probably the furthest thing from their mind. Few homeowners actually plan to go into pre-foreclosure.

Reasons for a pending pre‑foreclosure

Most homeowners face sudden extenuating circumstances that force them to stop making timely mortgage payments.

Here are a few of those reasons:

• Job loss / unexpected unemployment
• Sudden illness or medical emergency
• Death in the family
• Divorce / loss of a second income
• Excessive debt obligations
• Job demotion or promotions denials
• Inability to pay an adjustable interest rate that increases
• Unexpected major home maintenance expense
• Balloon payments due

e best way to stop a pre-foreclosure in Texas, for example, is to prevent the filling of a Notice of Default.  Lenders do not want to pre-foreclosure but will file a Notice of Default to protect their interests, if necessary. If you know you are unlikely to meet your mortgage obligation, the first thing you should do is call your lender.

Don’t put it off, be embarrassed or ignore letters from your lender because those responses will make the situation worse, not better. Depending on your particular situation and hardship circumstances, here are some loan modification options your lender might propose to you:

Time to make up your payments.

Lenders might agree to wait before taking legal action against you and let you work out a repayment plan that is affordable for you. This is called forbearance.

Forgiving a payment.

If you can agree on a way that you will be current after missing a payment or two (without the means to pay it back), the lender might give you a break and waive your obligation. This is called debt forgiveness, and it rarely happens.

Spread out the missed payments over a longer term.

For example, if your payment is, say, $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up. This is called a repayment plan.

Changing the terms of your loan.

​If your mortgage is an adjustable loan, the lender might freeze the interest rate before it increases or change the interest rate to a more manageable rate for you. A lender might also extend the amortization period. This is called a note modification.

Add the back payments to your loan balance.

If you have sufficient equity and meet the lender’s lending guidelines, the lender might increase your loan balance to include the back payments and re-amortize the loan. This is called a refinance.

Make a separate loan to you.

Certain government loans contain provisions that let borrowers who meet specific criteria apply for another loan, which will pay back the missed payments. This is called a partial claim.

Other Ways to Avoid Pre‑Foreclosure

When the lender files a Notice of Default, your options are limited. That is why it is better for you to call your lender,the Department of Housing and Urban Development (HUD), or an attorney before falling behind on your payments because lenders are often reluctant to work out repayment schedules after pre-foreclosure proceedings have been commenced.

You will be given a certain time period to bring the payments current, pay the costs of filing the pre-foreclosure and stop the pre‑foreclosure. This is called reinstatement of your loan. If you cannot make up the missed payments and the lender will not work with you.

Here are a few other options to stop pre‑foreclosure:

• Sell Your Home.
• Consider a Short Sale.
• Short Term Rental.
• Consult an Attorney.

This guide, information, and materials are not intended and should not be taken as
legal advice. You should contact an attorney licensed to practice in your applicable
state for advice on specific legal problems. The above information should not be
used as a substitute for legal advice.