Why Delaying A Bankruptcy Filing Could Cost You Your Home

When it comes to stopping foreclosure, time is the enemy of the Texas homeowner. Because Texas is a non-judicial foreclosure state, every day that a homeowner delays filing bankruptcy to save their home could be putting them at greater risk for foreclosure.

Here’s what you need to know:

  1. Once you miss a payment and the mortgage lender decides to foreclose on your property they can send you a notice giving you only 20 days to pay the delinquent mortgage payments plus fees and penalties or face foreclosure.
  2. After the 20 days have passed and you still have not paid the delinquent mortgage payment plus fees and penalties the lender can post at the courthouse an intent to sale your home in foreclosure. Technically in a little less than 2 months you could be facing a foreclosure eviction in the state of Texas if you don’t use bankruptcy to stop it.
  3. Mortgage companies will supposedly work with borrowers to modify their mortgage if they are facing foreclosure, however they do not stop the foreclosure process as they evaluate the homeowner’s mortgage modification application. There have been many cases where a homeowner has lost their home to foreclosure while they waited for a mortgage modification approval.
  4. Even if you receive a temporary mortgage modification for 90 days, there is a strong possibility that you may not be approved for a permanent modification. Many homeowners have lost their homes because they failed to get permanent modifications and did not have a bankruptcy plan lined up just in case the modification did not work out.  Don’t let this happen to you.

If you are facing a foreclosure in Texas and have other debts you can’t afford to pay, you should contact us about your bankruptcy options even if you are being considered for a mortgage modification.