What Rights Do You Have During a Foreclosure?

 Posted on January 17, 2024 in Foreclosure

Going through a foreclosure can be an incredibly stressful and uncertain time. As a homeowner in Texas facing foreclosure, you still have certain rights that you should understand to best protect yourself during the process. Awareness of your rights can help you make informed decisions about the next steps. A Texas home foreclosure lawyer can point you in the right direction.

You Have the Right to Receive Notices

Lenders and mortgage servicers in Texas must provide homeowners with notices at specific points during the foreclosure timeline. These required notices include:

• Notice of Default - Sent when you have missed or are late on mortgage payments, giving you at least 20 days to become current on payments before further foreclosure proceedings.
• Notice of Acceleration - Sent if you do not become current on payments in the allotted timeframe, indicating that the mortgage holder may accelerate the mortgage and require immediate payment of the outstanding loan balance.
• Notice of Substitute Trustee Sale - Sent after acceleration indicating your home will be sold at a foreclosure sale and providing the scheduled sale date. This must be sent at least 21 days before the sale date.

Understanding when you should receive specific notices can help you better navigate the timeline and exercise other rights.

You Have the Right to Request a Payment Plan

Under Texas law, homeowners facing foreclosure can seek a repayment agreement if they can demonstrate they have enough financial means to meet the requirements of such an agreement. The request must be made at least seven days before the scheduled foreclosure sale date. If an acceptable payment plan request is received, the lender must halt the foreclosure sale to review the request. This can provide much-needed extra time to become current on payments.

You Have the Right to a Postponement

Texas homeowners also have the right, under certain circumstances, to request a one-time postponement of their initial scheduled foreclosure sale. The mortgage lender must also receive this request within seven days before the sale date. Reasons warranting a postponement include accidental omission of necessary paperwork, family emergencies, and more. If an acceptable request is received, the lender must postpone the sale one time by no more than 60 days. This can provide additional breathing room.

Contact a Boerne, TX Home Foreclosure Attorney

Navigating the foreclosure process can be complex, but knowing your rights is empowering. Be aware of required notices you should receive, leverage your right to request a payment plan or postponement, and always seek legal guidance regarding your options. Knowing your rights can help you make the most out of a difficult situation. Contact a New Braunfels, TX home foreclosure lawyer to discuss your options. Call Law Offices of Chance M. McGhee at 210-342-3400 for a free consultation.