There are limits to the number of payments you can miss before your lender initiate foreclosure. It’s usually between three to six months’ payment. If you fail to use the available loss mitigation alternatives, your lender has the right to start a foreclosure process. Foreclosure in Texas is not uniform; both judicial and non-judicial foreclosure processes are practiced. From your loan agreement, you will find out which of the foreclosure process your lender will use. The first step towards saving your home is finding out how the foreclosure is processed. Foreclosure In Texas is swift, and you shouldn’t waste any more time before taking action.

However, if you are out of options or time, and don’t know what to do, consider filing for bankruptcy. A large number of homeowners in Texas file for bankruptcy to stop foreclosure. There are so many benefits you can enjoy by filing for bankruptcy. Foreclosure on your home will be stopped immediately you submit your petition. Not just foreclosure, every other creditor’s activities will be stopped till the court conclude your case. Chapter 7 and chapter 13 bankruptcy are the most common chapter of bankruptcy among homeowners. Here is a review of the two chapters:

Chapter 7

Chapter 7 bankruptcy is best for homeowners who have multiple debts and need relief. It helps by discharging all or most of your dischargeable debts. You will be left with only non-dischargeable debts such as student loans etc. Chapter 7 bankruptcy gives you a clean slate or a fresh start, and depending on how you go about it; your mortgage can also be cleared. However, your properties will be sold off to pay your lenders. You can lose your home in the process, and you should discuss it with your attorney before proceeding.

Chapter 13

Chapter 13 bankruptcy will only discharge your unsecured debts but gives you an extended period to get back on track with your loan. You will have about three to five years to pay up your loans and other incurred charges. If done well, you can be down with as low as $80 per month for your mortgage payments.

Don’t waste any more time. Contact your lawyer today and take action towards stopping the foreclosure.