Understanding Houston Foreclosures

In many Houston neighborhoods foreclosures are commonplace. Unfortunately foreclosures and short sales in Houston are becoming even more prevalent. The purpose of this article is to educate you about these Houston real estate terms like foreclosure and short sales and to let you know as a Houston homeowner, you have choices.

Houston Homeowners Be Careful!

Unethical individuals and scam artist are out to take advantage of unsuspecting Houston homeowners who are facing the difficult prospect of possibly losing their Houston property to foreclosure. As your trusted Houston Realtors, the Zoller Group is here to offer you assistance based on the highest ethics, always looking out for your best interest.

What is Foreclosure?

Foreclosure defined: In the state of Texas, a foreclosure is defined as a legal proceeding which begins as a result of a homeowner’s failure to make their mortgage payments in a timely manner. The trustee who holds the deed of trust begins the foreclosure process by virtue of the power of sale clause in the deed of trust. The trustee takes possession of the home of the borrower who has failed to keep their commitment to pay their mortgage payment in a timely fashion.

Why So Many Foreclosures?

There are many reasons why Houston homes fall into foreclosure. Some root causes of foreclosure include:

· Loss of job
· Death in the family
· Medical reasons
· Divorce
· Over extended credit problems
· Excessive interest rate resets from subprime loans

When Does Foreclosure Begin?

The foreclosure process begins when a Houston homeowner is at least 90 days behind on their house payment. The trustee will hold an auction, or takes possession of the home from the owner. Typically, the homeowner will be advised of a pending foreclosure by receiving a series of notices in the mail or certified mail. Quite often a notice will be posted on the front door of the property announcing that the property is in “foreclosure”. These notices typically advise the homeowner of their options. These options include: (1) bring the past due mortgage current or come to some compromise with the lender, or (2) the “acceleration clause” provides the trustee the legal right to conduct an auction sale and the homeowner will be forced to vacate the property.

Receiving Late Payment Notices? Take Action!

If you are behind on your mortgage payments and you are receiving late payment letters from your mortgage company, what ever you do, do not ignore these notices. We recommend you contact your lender as soon as possible. This is especially important if you know you can not fulfill your commitment to repay your loan. You may be able to avoid foreclosure with a remedy called a short sale. Contact the Zoller Group today and take action to possibly save your Houston home from foreclosure.