Viewing posts categorised under: Avoiding Foreclosure

Have You Received A Notice of Default on Your Central Texas Home?

Posted by Keller Home Solutions in Avoiding Foreclosure, Sell Your Home, Uncategorized | 1 comments

25.10.19

Have You Received A Notice of Default on Your Central Texas Home?

Have you ever been given a notice of default on your Central Texas home before? A Notice of Default is a document that a lender files to begin the process required for foreclosure. This document is sent to people that are interested in a specific property and a copy is given to other parties that are owed money.

Even more, this notice must be placed on the property for everyone to see as well as printed in a newspaper.

Going through the process of foreclosure can be very embarrassing for the defaulter, but it’s actually necessary for the protection of consumers. Before the advent of the law that required a notice of default to be sent to the defaulter and all other parties involved, people were sometimes foreclosed on without any prior warning. 

The notice of default is a very critical step in the foreclosure process that gives everyone with an interest in the property the opportunity to step forward, renegotiate their mortgages and claim their rights – before it’s too late.

If you’ve received a foreclosure notice of default, it’s very important to move fast and take any appropriate actions necessary, as time is of the essence.

Below are some of the steps you could take if you have received a notice of default:

Remain Calm

This may seem like the obvious first step, but it’s actually very difficult not to panic in the face of foreclosure. Facing a foreclosure involves dealing with a lot of anxiety and stress about the coming days, beyond just the property. 

These situations will take a while to resolve, and you will be best served by staying cool, thinking logically, to be able to come up with solutions to the predicament. Panic leads to making bad decisions, so try and stay cool.

Research the Foreclosure Process

Try as much as possible to learn about the foreclosure process and laws in Texas so you can be adequately prepared for what comes next.

Look into Available Resources

You need to find out what your options are. Some organizations are available to help you avoid foreclosure. There are also plenty of non-profit and government resources readily available for you and at your disposal. 

You’ll want and need good legal and tax advice from experts along the way. It would be best not to try and do everything alone. It’s okay to ask for help, as foreclosures can be quite complicated with lots of rules.

Research and find out what your options are and pick the best one available to you based on your individual circumstances. There are plenty more options out there than you realize.

Communicate, Communicate, Communicate

The banks involved don’t want your property. They only want their money back. 

Communicating effectively with the banks may could help slow down or terminate the foreclosure process if the appropriate action is taken and new terms are agreed upon. Time is always of the essence after receiving a notice of default. It’s always important to act fast and appropriately.

Should you need help from a REALTOR® that can answer questions, give us a call. We are not attorneys and do not provide legal advice, but we do have the resources and are happy to share them with you.

Are You Upside-Down in Your Home or Have Little Equity?

Posted by Keller Home Solutions in Avoiding Foreclosure, Financial Hardship | 0 comments

10.06.19

Do you owe more on your home than it is worth? Have you started hearing the term “upside down mortgage” or “underwater mortgage” looming around?

Upside-Down in My Mortgage Keller Home Solutions

If you’re not sure what upside down in your mortgage means, simply put, it means that you owe more on your home than it is worth. This is also known as having negative equity.

The term alone can make you feel like your world has been turned upside down, but it hasn’t. First things first, determine if you actually are upside down in your mortgage.

How to Determine if You’re Upside Down in Your Mortgage

  1. Refer to your mortgage statement to determine how much is still owed on your mortgage loan. If you don’t have a statement available, reach out to the loan originator for a copy of your most recent statement.
  2. Hire an appraiser for a home valuation or refer to a licensed Realtor to obtain the current market value of your home. An appraiser will charge a fee to do a full assessment whereas a Realtor can give you market value for free. In other words, they will compare your home to homes in your area that have sold.
  3. Once you’ve received those numbers, determine if the amount you owe is less than the home appraisal or valuation amount. If the amount you owe is higher than the value of your home, you are upside-down in your mortgage.

What Are Your Options in an Upside Down Mortgage?

If you are facing an upside-down mortgage situation, you are not alone. Millions of Americans have faced the same situation and made it out alive.

Are you thinking about walking away?

Will selling your property be to your advantage?

Is refinancing a viable avenue to explore?

Are you able to stay put?

There’s one thing about real estate. It is an ever-changing market that could eventually turn around in your favor. It’s unpredictable to say the least but there are so many variables to consider when deciding what is best for your situation. A professional can go over your options and help devise a plan of action. Again, you’re not alone.

If you are feeling overwhelmed and looking for solutions to your upside down mortgage, Keller Home Solutions can help. We will help you determine the best course of action for your specific situation. If you choose to walk away, we can help with that too.

You won’t have to worry about making repairs, showings are not required, and there are no hefty agent commissions. Just CASH, in your hand in as little as seven days or whatever time frame you prefer. No one has to know what you are going through but you and your agent.

Finding an upside-down mortgage solution is what we do. When it comes time to answer those hard questions, we’re here to help.

If you enjoyed this article, here are a few others you might like:

Have You Received a Notice of Default on Your Central Texas Home?

Do You Need to Sell Your House Fast for a Job Transfer or Relocation?

Have You Received a Notice of Default on Your Central Texas Home?

Posted by Keller Home Solutions in Avoiding Foreclosure, Financial Hardship | 0 comments

30.04.19

Have you received a Notice of Default on your Central Texas home and aren’t sure where to turn? At Keller Home Solutions, we work to provide insight and assistance to Texas homeowners who are facing financial challenges, including those related to foreclosure: Notice of Default, Notice of Sale, and Foreclosure Sale.

Avoid foreclosure prevent foreclosure notice of default austin texas Keller Home Solutions

When can a lender start foreclosure?

In most cases, you must be 120 days delinquent before any foreclosure activity begins. While it’s uncommon, smaller lenders and community banks can start foreclosure even if you are only one day past due. It’s important to note that the lender is only required to send you two notices before a foreclosure sale.

In most cases, foreclosure in Texas involves three steps, and the Notice of Default is the first in that process.

What is the Notice of Default?

The Notice of Default is a demand letter from your mortgage lender or servicer that is required by law. It notifies you that you have 20 days to “cure” your defaulted mortgage loan (pay the amount owed in full). Occasionally, this timeframe is increased to 30 days, and this is found mostly with FHA, VA, and home equity loans).

How can I prevent a foreclosure from happening to me and my family?

Believe it or not, you do have options. If you want to remain in your home, talk with your mortgage lender about a structured repayment plan, a temporary forbearance, or a loan modification. However, those aren’t your only options.

If you’d rather not go through the fuss and frustration of haggling with your mortgage lender, we’ve helped many homeowners avoid the foreclosure process completely. At Keller Home Solutions, we specialize in helping individuals get “back on their feet” by making a fair all-cash offer on their home.

A fair, all-cash offer from Keller Home Solutions empowers you to move on to your next chapter in life–to start fresh, and it takes the hassle and uncertainty out of selling your home. There are NO fees associated with our fair cash offer, and you can also avoid hefty REALTOR® commissions, costly property updates and repairs, and inconvenient showings that accompany a traditional home sale.

If you’re ready to receive an equitable, all-cash offer on your home today, click here to get started. Or, if you need immediate assistance, call us at (512) 518-1923.

*Resource used: https://texaslawhelp.org/article/foreclosure-fact-sheet-0.

You may also like these blog articles by Keller Home Solutions:

Five reasons to sell your home for cash instead of going into foreclosure

You’re in default — now what?

What happens after foreclosure?

Five reasons to sell your home for cash instead of going into foreclosure

Posted by Keller Home Solutions in Avoiding Foreclosure | 0 comments

02.03.19

Are you on the brink of foreclosure, and trying to decide what to do? You can stop foreclosure by selling your home. Here are a few reasons why a cash sale is a good decision.

  1. It protects your credit

This is the most important reason to avoid foreclosure. Going into foreclosure puts a black mark on your credit, and it will stay there for seven years. This will severely impact your ability to get a loan, or even rent an apartment. And, when you are finally eligible to qualify for a loan again, you will find that you’ll be put under much stricter requirements.  

As long as you don’t have late mortgage payments (60 days or longer) on your credit report, if you sell your home, according to Fannie Mae guidelines, you should be eligible secure a loan to buy another home immediately.

  1. You’ll save money

The average legal cost to go through a foreclosure is around $7,500, according to the U.S. Congress Joint Economic Committee.

If you go into foreclosure and the bank sells your home, it might not be enough to cover the balance you owe. The bank could come back to you with a deficiency judgment, which means you are still responsible for the remaining balance on your mortgage, even though you no longer own the house.

Let’s not forget taxes. After foreclosure, you’ll still owe income taxes on any forgiven mortgage loan balance.

Ideally, when you sell your home for cash, you’ll be able to cover the full balance of what you owe on your mortgage and move on without fear of any further legal backlash.

At Keller Home Solutions, we buy homes “as is”. This means you won’t have to worry about spending any funds on repairs or upgrades for your home, as you might have to do with a traditional listed sale.

  1. Less stress

Foreclosure proceedings can be stressful. The worries about the serious hit to your credit, the demand letters piling up in your mailbox and the confusing legal process, as well as the negative stain of foreclosure can be a lot to endure. Sadly, you might also become a target of scams from opportunists trying to take advantage of your situation.

When you sell your home with Keller Home Solutions, we’ll buy your home for cash. This means that there will be no need to secure financing with banks, which involves lots of time and uncertainty. When a buyer applies for a loan, they are on the bank’s timeline, not yours. It can take weeks to close, rather than just days with a cash sale.

There is also more potential for road blocks with a sale involving financing. You might receive a low appraisal, or the sale could fall through if the buyer is not approved for a loan.

When you do a cash sale, you also avoid contingencies. These clauses allow the buyer back out of the sale if the contingencies are not met.

Opting for a cash sale with Keller Home Solutions is the swift, hassle-free way to sell your home and avoid foreclosure.

  1. Control your own destiny

Selling your home on your own terms versus being at the mercy of the bank is empowering. The feelings of shame and failure during a foreclosure can be demoralizing to you and your family. When you decide to sell your home yourself, you are taking control of your situation and moving on with your life — this is no small thing.

Take the opportunity to get closure and move on from this chapter and make a fresh, positive change in your life.

  1. Benefits for your neighbors

When neighborhoods are full of vacant, foreclosed homes, the property values drop. Selling your home can help to preserve the property values of your neighborhood, to keep the area desirable for prospective buyers.

Ready to move forward with selling your home? Contact us at Keller Home Solutions. We’re an Austin-based investor with local experience. We can offer you a fair market price on your home, all in cash and with a quick turnaround time.

You’re in default — now what?

Posted by Keller Home Solutions in Avoiding Foreclosure | 0 comments

27.02.19

You didn’t intend for it to happen.

One missed mortgage payment snowballed into months of missed payments, and now you’ve received a Notice of Default letter.

Timelines

Texas has one of the fastest foreclosure processes in the country. It can be as quick as 60 days, whereas the US average is 720 days.

Texas law states that lenders must wait until you are 120 days delinquent before sending an official written Notice of Default. The notice will allow you 20 days (some loans allow 30 days) to “reinstate” your loan, meaning you can catch up on your missed payments and prevent foreclosure.

After the 30 days are up, the lender will send a foreclosure notice, called a “Notice of Trustee’s Sale.” The lender must give you at least 21 days notice of the sale.

Options

If you haven’t already had that tough conversation with your lender, NOW is the time to discuss your options.

There may be some alternatives, such as negotiating a payment plan, a temporary forbearance, or a loan modification. A HUD-approved housing counselor can also provide assistance to avoid foreclosure.

Selling Your Home

If you’ve exhausted all repayment options, accept the fact that it’s time to let go of your home.

Selling your home is a way to avoid foreclosure that gives you some control.

When you are on a tight foreclosure deadline, a cash sale is a good option. These sales can close in a matter of days versus weeks for sales requiring financing. Keller Home Solutions is an Austin-based investor with local market experience. We can offer you a fair market price on your home, all in cash and with a quick turnaround time.

Last Resort

Filing for bankruptcy is not ideal, but it can stop a foreclosure in its tracks. In some cases, it can help you to keep your home.

Chapter 13 bankruptcy can help you keep your home while you repay your debts. If you don’t want to keep your home but need to buy some time, filing for Chapter 7 bankruptcy can delay foreclosure for a few months.

Bankruptcy is a last resort because it stays on your credit report for seven to 10 years, which makes it difficult to get another loan or even rent an apartment. Similarly, a foreclosure will stay on your credit report for seven years.

What happens after foreclosure?

Posted by Keller Home Solutions in Avoiding Foreclosure | 0 comments

23.02.19

Have you missed a few mortgage payments, and now you’re worried about what will happen next? Here’s a breakdown of the foreclosure process in Texas.

How quickly does foreclosure happen?

Texas has one of the fastest foreclosure processes in the country. It can be as quick as 60 days, whereas the US average is 720 days.

In Texas, both judicial and non-judicial foreclosures are allowed.

A judicial foreclosure entails filing a lawsuit to get a court order to foreclose.

However, most foreclosures in Texas are non-judicial, which are much quicker since they do not require court approval.  

Foreclosure does not automatically start after one missed mortgage payment. Texas law states that lenders must wait until you are 120 days delinquent before sending an official written Notice of Default. The notice will allow you 20 days (some loans allow 30 days) to “reinstate” your loan, meaning you can catch up on your missed payments and prevent foreclosure.

Foreclosure notice and sale

If after the 30 days, you are unable to reinstate your loan or work out a plan with your lender, they will send a foreclosure notice, called a Notice of Trustee’s Sale. The lender must give you at least 21 days notice of the sale. The letter must include the date, time and location of the sale. This will give you an idea of how long you can stay in your home.

Foreclosure sales in Texas happen on the first Tuesday of each month between 10:00 am and 4:00 pm at the county courthouse.

After your home has been sold, it’s time for you to leave. It’s preferable to leave voluntarily — evictions will appear on your credit report. If you do not vacate the home, the owner will file an eviction notice, sometimes called a Notice to Quit, giving you three days to leave.

If you do not leave during this timeframe, the owner will serve you with an eviction lawsuit. Pursuing the lawsuit can extend the time you have in your home, however, it will compound the harm you’ve already done to your credit due to foreclosure. It will also impede your ability to rent or lease a home in the future.

Note that the state of Texas does not have a statutory right of redemption. Once your home is sold, you have no right to live there, nor do you have the right to attempt to redeem your home. Once your home is gone, it’s gone for good.

After foreclosure

If the sale of your home was not enough to cover the full amount that you owed on your mortgage, your lender may come after you with a deficiency judgment. Some states have anti-deficiency laws, however, deficiency judgments are allowed in Texas. A deficiency judgment means that you must pay the lender the balance of what is still owed on your mortgage, even though you no longer own your home.

Another issue to consider is taxes. If your mortgage debt was forgiven in the foreclosure, you might actually owe taxes on the amount between how much the home sold for and what was still owed on your mortgage.

Finally, foreclosure is a nightmare for your credit. It puts a black mark on your credit report, which stays there for seven years. This means that it will be difficult, even impossible, to secure another loan for many years. Make an effort to slowly rebuild your credit with healthy financial habits.

Foreclosure is a stressful process that can be damaging to your finances and to your morale. Foreclosure should be seen as a last resort — there are ways to stop it.

If you are looking for options to stop foreclosure, consider selling your home for cash. Contact us at Keller Home Solutions today. We can help you to sell your home for a fresh start. We’re an Austin-based investor with local experience. We can offer you a fair market price on your home, all in cash and with a quick turnaround time.

What is Considered Financial Hardship?

Posted by Keller Home Solutions in Avoiding Foreclosure, Financial Hardship | 0 comments

19.02.19

If you are having trouble making ends meet, you might be able to ask your lender or credit card companies for assistance. Oftentimes, writing a hardship letter to explain the details of your situation can help your case.

What constitutes a hardship?

How do you know if you are experiencing financial hardship? The IRS defines “hardship” as when you are not able to pay for allowable living expenses.

“Allowable living expenses” are the day-to-day things you need to take care of your family. These expenses include:

  1. Food
  2. Housekeeping supplies
  3. Apparel and services
  4. Personal care products and services
  5. Miscellaneous

Another way to look at it: If what you owe each month is more than what you earn, you are experiencing financial hardship.

There are many different situations that can lead to financial hardship —  

Losing your job, work cutbacks, or reduction in pay

These are the most common reasons for financial hardship. If you or a contributing member of your household loses their job, your finances can take a big hit. If you work an hourly job and your hours have been significantly cut, this can also qualify. Or, perhaps you got a new job, but it pays far less than your previous job. Even though you are employed, this can be treated as hardship.

If you are a business owner or are self-employed, a decline in business and revenue is also considered financial hardship.

Divorce or separation

Besides the legal fees, taking over sole responsibility for mortgage payments and other household expenses can be overwhelming with only one income. Add shared debt and child support, and the expenses can stack up quickly.

Illness or injury

Medical bills associated with serious conditions such as cancer or a heart attack, or even the slower onset of symptoms of Alzheimer’s disease or diabetes can take a significant toll on finances.

Death

Funeral costs due to a death in the family can put a serious strain on finances.

Disaster

Natural disasters and acts of God, as well as fires or car accidents can cause thousands of dollars of damage.

Legal problems

If you or a family member is involved in a costly litigation or is incarcerated, it can have a devastating effect on your finances.

If you have exhausted all other options to get out of hardship, you may look at selling your home and downsizing to a cheaper living situation to alleviate some of the financial stress. Keller Home Solutions is an Austin-based investor with local experience. We are willing to offer a fair market price on your home, all in cash and closing within days instead of weeks.

Contact us for a consultation today.