Attorney Generals in 50 states have opened investigations into allegations that mortgage companies are engaging in illegal foreclosure tactics such as robo-signing. But how will these investigations impact the processing of a foreclosure in Texas? Robo-signing, the processing of foreclosure related documents without proper review and notarization is allegedly a huge problem in the 23 states that have a judicial foreclosure process. Since Texas does not have a judicial foreclosure process, robo-signing may have been less of a problem here; but probably still took place. Right now a foreclosure in Texas takes about 41 days and is easier to obtain than in other states.
If the foreclosure process is being investigated for fraudulent foreclosure tactics, the investigator will need to review fewer documents because the mortgage servicer only needs a notarized document after the foreclosure sale takes place. It's really not clear exactly how much of a delay the investigations will create, but homeowners facing foreclosure should act as if their foreclosure will proceed quickly. If you are trying to save your home from foreclosure by getting a mortgage modification or some other settlement from the mortgage company, then you probably also want to contact a bankruptcy attorney while you are waiting for a response.
If you are going to allow the foreclosure to proceed and not fight it, then you really need to begin looking for other housing immediately. Remember, the housing industry has a backlog of foreclosures and they are doing whatever they can to move as quickly as possible so they can clear out the backlog. Don't get caught unprepared for a foreclosure eviction because you thought you had more time.