Foreclosure is a scary thing for each & every property owner. One can lose their everything, if they got trapped by this situation. But it can be prevented by following some selective ways..

1. Tips To Stop Foreclosure In Houston

2. Table Of Contents
 Understanding why foreclosures happen- Scenarios
 Types of foreclosures in the US
 Foreclosure laws in Houston, Texas
 Alternatives for averting foreclosure
 Conclusion/Deduction

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4. UNDERSTANDING FORECLOSURES
Foreclosures generally occur when a borrower falls behind in making
outstanding payments to banks, lenders or mortgage holders whom s/he
owes money. The process is initiated by the worried lenders who are in doubt
that their money would never be returned to them. Hence they file a ‘notice
of default’ against them, initiating the foreclosure process. The borrower is
then given a stipulated time within which the outstanding amount must be
paid; else their house is taken away from them, auctioned and the sale
proceeds are passed to the lenders. This stipulated time given to them not
only to acquire money but also to fight their case back and to provide them
with opportunities to save their house. The person has several options to stop
foreclosures, most of which would be discussed in the next few slides……

5. Types Of Foreclosures
There are generally 4 types of foreclosures prevalent in the US and different
stares have different laws corresponding to foreclosure:
 Foreclosure By sale: These are the most familiar foreclosures that one
hears about. If the borrower fails to make the outstanding payment, the court
orders foreclosure of their property which is then sold through auctions.

6.  Power of sale foreclosure: In loans/mortgages having a trust of deed,
having the provision for ‘power of sale’ meaning that the lender can
automatically sell the property if the loan is not recovered.
 Tax foreclosure: Generally levied on people who avoid taxes, their
property might be foreclosed if there is recurrent avoidance of taxes.
 Deed in lieu of foreclosure: For people who want to avoid the entire
foreclosure process, they might declare that if they cannot pay their
outstanding deeds, their properties are transferred directly to their lender in
exchange that the lender would consider loan to be paid in full.

7. Foreclosure Laws In Houston, Texas
(According To ‘HUD Guidelines’)
 When a person takes out a loan to purchase residential property
anywhere in Texas, they typically sign a promissory note and a deed of
trust. A promissory note basically contains the promise to repay the loan,
as well as the terms for repayment.
 A grace period of 10-15 days is allowed to lenders if they miss their
loans and a small fee is also charged for late payments. However, if a
borrower falls behind in more than one payment, they are sent letters and
contacted by their lenders.

8.  Before filing foreclosures, borrowers are generally given a grace time of
120 days to be behind payments before any judicial or non-judicial
foreclosure is filed against them.
 Foreclosure sales in Houston are held the first Tuesday of each month
between 10:00 a.m. and 4:00 p.m. at the county courthouse. The sale
must begin at the time stated in the notice of sale, but no later than three
hours after the time scheduled on the notice of sale.

9. Alternatives For Stopping Foreclosures In Houston
 Altering repayment plan through negotiation with lender
 Modification of mortgage, also to be negotiated with lenders, either
directly or by involvement of a property lawyer
 Avoiding foreclosure through short sale of property
 Deed in lieu of foreclosure can be used to pass on the property in
exchange that the outstanding would be considered as cleared

10. Foreclosures can be absolute nightmares for a family person and can lead him/her
into depression. It generally happens when you miss one or more payments and
the lender files a notice of default against them.
In some states of the US, the property under foreclosure is auctioned and the
returns from it are transferred to the lender/mortgage holder, it some other, the
property is directly transferred to the lender.
You can try to convince the lender or the court that with more than one source of
income, you are in a better position to pay the pending amount payable.
If unsure what to do, one can always take professional help from a professional
property lawyer.
A short sale can also help people in quickly selling the property before any
foreclosure procedure begins. You can sell a property at a much higher rate this
way, which give you a better chance to bounce back.
For more information on short sale experts, you can visit the website:
www.affordablehousing-houston.com

11. This Presentation Has Been Prepared By
Affordable Housing – Houston
Website: www.affordablehousing-houston.com