In Texas, a foreclosure occurs when the borrower is at least ninety days late on their mortgage. Once the loan defaults, the lender starts the foreclosure process. The borrower has a few options to stop the foreclosure process in Longview, TX with the help of an attorney and their strategies.
Mortgage Loan Modifications
A loan modification is possible if the terms aren’t affordable for the borrower. This indicates predatory lending practices that are illegal. The attorney evaluates the mortgage loan and determines what terms need changing. This modification could place the late fees and payments at the end of the mortgage and stop the foreclosure altogether.
Filing for Bankruptcy
Bankruptcy provides the borrower with more time to settle their debts, which proves beneficial for managing their mortgage and preventing foreclosure as well as lowering the cost of current debts.
The first step for acquiring a bankruptcy is to prove eligibility. Bankruptcy eligibility is based on income. To qualify for chapter 13, the borrower must have an income above the average income. Currently, the median income in Texas is $53,105. However, it may vary based on the county in which the borrower files. If they don’t have a greater income, they qualify for chapter 7 only.
What to Expect During Bankruptcy
Chapter 13 provides a payment plan to settle debts, which allows them to submit payments each month that are divided among their debts. The value of the payments are based on their income minus monthly obligations. These monthly obligations include utility costs and necessities primarily.
Chapter 7 is liquidation. All properties and assets that were chosen are sold through the court. The case lasts up to six months, and most debts are settled.
The foreclosure process in Texas allows lenders to seize residential properties. The borrower must default on their loan before this action is taken. An attorney helps the borrower determine the most appropriate action to prevent this process and the loss of the home. Consumers who need help with the foreclose process in Longview, TX should contact Business Name for more info today.