Falling oil prices have meant trouble for some housing markets, including
many areas in Texas. In fact, foreclosure activity has jumped more than
15 percent in the state in the last year. With so many Texans seeking
relief during challenging economic times, we would like to take this opportunity
to set the record straight on five common myths about foreclosure:
Filing for bankruptcy stops a foreclosure. While bankruptcy may temporarily delay the foreclosure process, it is
not a strategy for completely stopping it. Other loss mitigation options
may be available if you contact your mortgage servicer in a timely manner.
You’re not responsible for paying the bank’s legal fees. This, unfortunately, is not the case. If you read the fine print of your
mortgage agreement, you will find that you are in fact responsible for
the bank’s legal fees in the event if a foreclosure.
The bank really wants your home back. Foreclosure can be a time consuming process for banks, and is often used
as a last resort. Most banks will do everything possible to work things
out with a homeowner in order to avoid foreclosure.
Your involvement with the property is over once the bank takes it back. If the bank sells your home after foreclosure for less than what you owed
on your mortgage, you will be held responsible for paying the difference,
or “deficiency.” Furthermore, the bank can collect interest
on that amount. A chapter 7 bankruptcy or deed in lieu of foreclosure
may clear you of owing a deficiency, so contact Allmand Law Firm, PLLC
to speak with a Dallas / Fort Worth bankruptcy attorney to talk about
Even if I pull together the money to stop a foreclosure, there is no way
to stop it. Most states, including Texas, have laws that require foreclosure proceedings
to be stopped if the homeowner has the money to cover all missed mortgage
payments, late fees, and legal fees owed. The lender or servicer is required
by law to send the borrower a notice of default and intent to accelerate,
which gives the homeowner at least 20 days to cure the default before
notice of sale can be given.
If you are behind on your mortgage payments, you have options. We invite
you to contact Allmand Law Firm, PLLC to discuss your unique case and
obtain advice tailored to your situation. When you choose to work with
our firm, we may be able to put a stop to foreclosure proceedings, protect
your credit history, protect you against potential tax obligations, and more.
Case evaluations are provided free of charge. Allmand Law Firm, PLLC serves Texas clients
from two office locations in