Foreclosures Attorney in DeSoto, Texas

Receiving a foreclosure notice can be one of the scariest experiences for homeowners. If you are facing foreclosure and wondering about your options, seek immediate legal assistance. 

Attorney Gwendolyn E. Hunt provides skilled guidance and legal representation to homeowners in DeSoto, Texas, and throughout Fort Worth and Dallas. As a skilled foreclosure attorney, she knows how to assist residents of Texas in defending their rights and keeping their homes. If your home is at risk of foreclosure, contact Hunt Law Firm for help seeking the best settlement possible in your favor.

Reasons for Foreclosures

The term “foreclosure” is used to describe a legal proceeding through which a lender (bank or mortgage company) sells a home after a borrower’s default. In other words, a lender can use foreclosure to take possession of the property and satisfy the mortgage loan when a borrower fails to meet repayment obligations.

Federal law requires lenders to wait until a borrower is at least 120 days delinquent on their payments before sending out a notice of foreclosure or filing for foreclosure. If the borrower fails to take appropriate actions after receiving a notice of foreclosure, they risk losing their home. 

One of the most common reasons for foreclosure is “defaulting” on a mortgage loan. The term “default” means that a borrower violates the terms of a loan agreement, such as failing to make required payments on a debt. Common causes of default, which may ultimately lead to foreclosure, include:

• Failure to make the required payments on debt;

• Failure to pay the required property taxes;

• Transferring ownership of the property to another person without obtaining permission from the lender; and

• Failure to pay the homeowners’ insurance.

You can be in violation of the loan or mortgage contract for doing or failing to do other actions spelled out in the contract. When a default occurs, you risk losing your home during the foreclosure process.

Foreclosure Process in Texas

There are three ways in which a lender can foreclose on a borrower’s property to begin the foreclosure process:

1. Judicial foreclosure. In a judicial foreclosure, the lender must file a lawsuit against the borrower and obtain a court judgment before selling the borrower’s property. However, it is rather rare for lenders to foreclose on a property through a judicial foreclosure.

2. Non-judicial foreclosure. As the name suggests, a non-judicial foreclosure allows the lender to sell the borrower’s property without going through all the court proceedings, such as filing a lawsuit and obtaining a judgment. However, the lender must have a deed of trust that contains the “power of sale” clause to qualify for this type of foreclosure in Texas.

3. Expedited foreclosure. The third type of foreclosure is called “expedited foreclosure” or “quasi-judicial foreclosure.” As the name implies, an expedited foreclosure allows the lender to foreclose on a property more quickly compared to a typical foreclosure process.

Regardless of whether the lender pursues a judicial, non-judicial, or expedited foreclosure, you need to take immediate action to protect your property. You may need to reach out to a foreclosure attorney for assistance to help you formulate a plan.

Legal Rights and Options When Facing Foreclosure

When facing foreclosure, you have a limited amount of time to take action and avoid losing your home. That is why it is vital to understand your legal rights and options in order to stop the foreclosure. Depending on your circumstances, you may be able to stop the foreclosure by:

• Using “wrongful foreclosure” as a defense. If you can prove that the lender is trying to foreclose on your property without proper legal grounds, you may be able to claim that you are a victim of “wrongful foreclosure.” Wrongful foreclosure may occur as a result of the lender’s negligence, intentional misconduct, or mistakes.

• Selling your home. If you cannot reach a favorable agreement with the lender to stop foreclosure, you may need to consider selling your home before the auction. The sale of a property before the action is known as a “short sale” if (a) a homeowner sells the home for less than the amount they owe and (b) the lender agrees to accept the lower amount.

• Signing a deed-in-lieu of foreclosure. As an alternative to foreclosure, the lender may accept a notarized deed to your home. Signing a deed-in-lieu of foreclosure would transfer ownership of the home to the lender in exchange for forgiving the amount of your mortgage debt and canceling the foreclosure action.

• Filing for bankruptcy. Another way to stop the foreclosure process is to file for bankruptcy. When a homeowner files for bankruptcy, the court issues an automatic stay that requires all creditors to stop trying to collect debts or pursue legal action against the borrower.

It is essential to assess your circumstances and evaluate all available options to understand how to proceed in your specific case. Attorney Gwendolyn E. Hunt has over three decades of experience helping residents of DeSoto, Dallas, and Forth Worth, Texas, protect their financial futures.