If you’re behind on your mortgage payments or you know that your income will not be sufficient to make the payments going forward, it may be time to consider a short sale on your home. A short sale can help you avoid foreclosure and salvage your credit rating while still letting you liberate yourself from your home loan.
Homeowners often wait until they receive a notice of foreclosure from the lender before starting the short sale process. In some cases, it’s already too late.
In Texas, foreclosure auctions happen the first Tuesday of every month. After sending several demand letters, the bank will send a foreclosure notice to a homeowner just two or three weeks before the auction date. The fact is a short sale takes time—often several months. There is a possibility we can still save the house within three weeks of foreclosure, but not less than that.
If you face financial hardship and know you will default on your loan, start thinking about a short sale right away. You can always stop the process if your financial situation turns around, but if you wait too long to start, you will miss the window of opportunity.
In general, a lender will start the foreclosure process after you are 60 to 90 days late on payments. Some lenders take longer, but just because you don’t hear from the bank doesn’t mean they have forgotten you. If you don’t pay your mortgage, the lender will send you a foreclosure notice in due time.
You will usually receive at least one demand letter from the bank telling you the amount that you owe and the date by which you must catch up on missed payments. The best course of action is to call us as soon as you receive the first demand letter, so we can explore the option of a short sale. If you fail to pay by the date specified in the letter, the bank will send another demand letter for the full amount of the note, due immediately. Finally, the lender will send a public notice of default with the foreclosure auction date via certified mail.
Too many families have lost their homes in the current recession. Don’t let that happen to you. If you are behind on your payments—and especially if you have received a demand letter or notice of foreclosure—take action immediately. If we can answer any questions or otherwise be of help, please give us a call.