Foreclosure is a distressing situation that arises when a homeowner fails to make timely mortgage payments and is unable to resolve the outstanding debts. As a mortgage constitutes a binding legal contract between the homeowner and the lender, defaulting on the loan can lead to the lender selling the property through auction to settle the debts. This unfortunate scenario can result in the homeowner losing their home and facing severe damage to their credit score.
No one wants to receive a notice of foreclosure and yet, in a nationwide study, nearly 1 million Americans were afraid of losing their homes (U.S. Census Bureau Household Pulse Survey, fielded from July 27 to Aug. 8, 2022). Foreclosure can occur from a number of reasons, including:
- Job loss and loss of income
- Divorce or death of a spouse or partner
- Mounting debt, including medical and credit cards
- Moving without being able to sell the home
- Natural disaster
Electrum is a local company operating in Texas that has built their business by buying distressed houses and properties in the area for cash. We promise competitive cash offers without the hassle of dealing with real estate agents, title companies, traditional bank financing, and more!
SELL YOUR LUBBOCK HOME IN FORECLOSURE
If you’re in foreclosure or about to be… this is for you!
At Electrum, our goal is simple: to help homeowners like you get out of a tough situation with the cash you need to take back your freedom.
If you’re facing foreclosure — or it’s right around the corner — we can help!
We buy houses AS-IS, fast, and for CASH — no repairs, no commissions, no delays.
What is Foreclosure?
Picture this: You or your spouse suddenly lose your job, and as bills continue to stack up, your mortgage payment becomes harder to manage. Even if you find new employment, it may not be enough to catch up on the growing debt. As financial pressure intensifies, the risk of foreclosure becomes a real and urgent concern.
How Long Do You Have To Get Out of Your House After Foreclosure?
In Texas, foreclosure typically follows several key stages: missed payments, public notice, foreclosure filing, auction, and eviction. The timeline for each step can vary based on state regulations. Homeowners generally have anywhere from 120 days to nine months before the lender can initiate either a judicial or non-judicial foreclosure. During this time, the lender will reach out through phone calls, mail, and email to provide updates and inform you about the next steps in the process.
The Different Types of Foreclosure
There are two different types of foreclosure you may experience: nonjudicial foreclosure or judicial foreclosure.
What Is Non-Judicial Foreclosure?
Choosing a non-judicial foreclosure is often the fastest and most cost-effective way for a lender to reclaim your Texas property. This process avoids involving homeowners in lengthy court proceedings and follows state-specific regulations. With non-judicial foreclosure, the lender can take possession of the home and sell it to recover the outstanding debt through the “power-of-sale” clause in the deed of trust. While not permitted in every state, lenders generally favor this approach as it helps them avoid the costs and delays associated with court proceedings.
What Is Judicial Foreclosure?
In states that require judicial foreclosure, your lender must file a lawsuit requesting court approval to sell your home. You will receive official notice of this legal action, and whether you agree with it or not, you must respond. If you fail to do so, the lender automatically wins the case and gains the right to proceed with the foreclosure sale. Once the home is sold, you may still be responsible for paying the difference between your remaining mortgage balance and the sale price.
Foreclosure auctions operate differently from traditional home sales, often resulting in properties selling below market value. Even if your home is in excellent condition and worth significantly more than your outstanding mortgage, you could still end up owing tens or even hundreds of thousands of dollars for a property you no longer own. This remaining debt is known as a deficiency judgment. Because the judicial foreclosure process is lengthy and costly, many lenders prefer non-judicial foreclosure as a quicker and more efficient way to recover their losses.
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How to Sell Your House Before Foreclosure in Texas
Let’s break down a few ways you can sell your house, depending on your time frame and situation:
Hire A Real Estate Agent
When it comes to selling a house or property, many Americans automatically turn to local real estate agents. However, this may not always be the best choice, especially in challenging circumstances like foreclosure. While a reputable agent can assist with listing your property on the MLS and preparing it for showings, their commission – typically ranging from 3% to 6% of the final sale price – can significantly reduce the amount you receive. This reduction could be a substantial loss, especially if you are already struggling with debts and aiming to repay your lender in full. It’s crucial to weigh the benefits and drawbacks of working with a real estate agent before making a decision.
Plus, there’s the additional fear of not knowing when your house will actually close. Realtors may promise a lot, but at the end of the day you’ll still need to find the right buyer and wait 30+ days for a traditional close. For some homeowners who are facing auction and eviction, even waiting one month might be too long.
Short Sale
If you owe more on your home than its current market value, your realtor may recommend a short sale. This process becomes necessary when your outstanding mortgage balance exceeds the home’s worth. For instance, if you still owe $200,000 but the home is only valued at $150,000 in today’s market, you’ll likely need to go through a short sale. While it may seem like a viable solution, it is neither quick nor simple.
The first step is obtaining approval from your lender. To qualify, you must demonstrate financial hardship by providing documents such as W-2 forms, medical expenses, or other proof of financial distress. If you’ve experienced a significant loss of income, the lender will need evidence that this situation is long-term and unlikely to improve. Should the lender agree to the short sale, you’ll need to hire a real estate agent and an attorney experienced in these transactions—both of whom will charge the same fees as they would for a standard home sale.
If foreclosure proceedings haven’t been ongoing for too long and you’ve maintained communication with your lender, they are more likely to approve the short sale. This option helps them recover part of their financial loss while avoiding the lengthy and costly foreclosure process. However, for the average homeowner, a short sale can impact their financial future for five to seven years.
Even after selling the home and settling some of the debt, a short sale can harm your credit similarly to filing for bankruptcy. Credit reporting agencies will record the missed mortgage payments and the short sale, making it difficult for former homeowners to obtain credit cards, finance a vehicle, or secure another mortgage for the same length of time as a bankruptcy would.
Sell Your House AS-IS to A Cash Buyer
If you’re facing a tight deadline to sell your home before foreclosure leads to auction and eviction, there are still solutions available! You can list your property with a real estate agent, negotiate a short sale with your lender, or—perhaps the most convenient option—sell directly to a trusted cash buyer who can assist you quickly.
Some key advantages of selling to a direct cash investor include:
- A fast and hassle-free closing process.
- No commissions or hidden fees.
- No need to market your home or wait for a buyer.
- No cleaning, repairs, or renovations required!
By selling your property as-is to a cash buyer, you can avoid foreclosure and potentially walk away with enough funds to settle outstanding debts. Freeing yourself from the weight of mortgage payments and financial stress can be one of the greatest steps toward a fresh start!
Can You Stop Foreclosure Once it Starts?
Pay Off Your Loan & Fees
You’re facing a challenging financial situation—your debt keeps growing while your income stays the same. Now is the time to take action and find a way to pay it down quickly. Do you have any assets you can sell? Perhaps friends or family members could offer financial support through a loan or gift to help you regain stability. If you’re committed to reducing your debt and avoiding foreclosure, consulting a financial expert could be a smart move to restructure your budget. Whether you use one of these strategies or a combination of them, taking proactive steps can help you regain control and move toward a stress-free financial future.
Declare Bankruptcy
As a final option, bankruptcy may temporarily halt foreclosure, but it comes with significant consequences. The process is complicated and requires the expertise of a bankruptcy attorney. If your petition is approved by the court, you’ll be enrolled in a government-mandated credit counseling program, and the bankruptcy will remain on your credit report for seven years. This can impact many aspects of your financial life, making it difficult to secure a car loan, open new credit accounts, or even qualify for rental housing in the future.
The Homeowner Affordability and Stability Plan (HASP)
If your debt is higher than your income, you may be eligible for the Homeowner Affordability & Stability Plan (HASP). HASP is a loan modification program targeted at borrowers who are at risk of foreclosure due to insufficient income. This government program was designed to help homeowners in the United States restructure their monthly payments to fit a limited budget. Apply for the program here to see if you qualify.
Related Articles
5 Ways the Foreclosure of Your Texas House Will Impact You in the Future
What Homeowners in Texas Can Expect During the Foreclosure Process
The Difference Between Pre-Foreclosure and Foreclosure for Homeowners in Texas
How to Sell Your House During Bankruptcy in Texas
Stopping the Foreclosure Process: A Guide for Texas Homeowners
Sell Your House Fast to a Cash Buyer
Ready to sell your home but can’t afford to wait 30+ days for a traditional closing? Worried that a short sale will tank your credit? Want to eliminate your debt quickly and put an end to the bank’s pressure? A direct home buyer or cash investor could be the perfect solution!
By working with a reputable and experienced cash buyer, you’ll have the opportunity to sell your home as-is to a company that has the funds ready to purchase immediately. This means you can bypass the lengthy foreclosure, eviction, and auction process in just a few days—all while protecting your credit.
While selling to a cash investor may not bring in full market value, the benefits often outweigh the difference. A fast closing, no commissions, no required inspections, and zero hidden fees can make the final sale price more favorable than it seems. Most importantly, because an investor can close quickly, you can often sell before the bank auctions your property—allowing you to secure a better outcome rather than letting the bank sell it at a deep discount just to clear their books.
We Buy Houses in Foreclosure & Pre-foreclosure–
Get Your Offer Today!
Does the idea of finally walking away from a property without the storm cloud of foreclosure hanging over your head? Contact a real professional at Electrum to find out more and get a fair cash offer for your property today.
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