texas foreclosures free

Foreclosures? Has anybody actually done this?

Ok. I want to buy a house. I figured a foreclosed home would be cheaper. I need to know where to find the info cheap if not free. Has anybody bought one? Do you know where to get the best list? Is it really as “cheap” as “they” make it sound? Do you end up paying a huge amount on closing cost? What exactly happens when you decide to go for it? Are the transactions the same as buying a non-foreclosed home? I’m in Texas, are there different rules for different states? Please help!

Interested first time home buyer.

The best lists are the free ones, the ones that your agent provides you.

These are not exactly like non-foreclosed homes. They are as-is, no repairs, often no inspections. FHA commonly will not accept them.

Your key, especially since it appears you are not a seasoned home buyer, is getting a really, really good agent. You want one aggressive enough to get the bank to take your offer (no patsy’s!), and one honest enough to tell you which ones not to buy.

While an agent is not an inspector, a good one will have some idea of problems just walking through the house, also they will know about the builder, problems the homes in the neighborhood have.

What To Do And Who To Talk When Facing Foreclosure

Almost everyday we are showered with news about the condition of the Austin housing market, mortgage foreclosure and the impact they have on individuals and on the economy at large. Early reports indicated that the foreclosure crisis might not be very severe in Texas as it may be in other states. However, the number of foreclosure cases has increased dramatically over the past few months.

It is important to understand the foreclosure process and the following terms will help you to understand it better:

• Foreclosure – Foreclosure is a process in which the financial institution, for instance, the loan servicer or the loan provider, reclaims the home, land, property, or valuable belongings if you are unable to make mortgage payments on time. Once you face foreclosure, you lose the rights on your home, property, or land and the loan servicer may persist that you leave.

• Servicer/Lender – Loan servicer is the financial institution or loan provider who collects the loan payments made by you. If you have any questions or worries regarding your mortgage or mortgage payments then you must first contact the loan servicer.

• Term – Term or mortgage repayment period is the time that you take to repay the mortgage. The term may be of 15, 20 or even 30 years, however, a longer mortgage term period requires you to pay a high rate of interest over the life of the loan.

It is a frightening to lose your home and belongings to a Texas foreclosure. The experience is certainly very terrifying and you may be left with nothing. In case you are facing problems with your mortgage or mortgage repayments then you must immediately contact the loan servicer and inform them about your problem. The following are a few guidelines that will help with your Austin foreclosure.

Talk with your respective loan servicer

Majority of mortgage borrowers have a strong temptation to ignore any communication with their loan servicer. However, it is very important to let your loan servicer know about any problems that you may have in making repayments. A survey indicated that more than 50 percent of mortgage borrowers who are facing a Texas foreclosure do not communicate with their servicer about the problem or discuss modification and payment options. Most lenders will work with their clients to help them cope with foreclosure and try to make their payments more affordable. If the problem is ignored, then it will certainly make things worse. While discussing your loan, you must do the following:

• Prior to the discussion session, you must write down all your loan problems and the subjects that you wish to discuss. The most common questions asked by the lender are
  • When can you make payment,
  • What is the circumstance behind you missing your payments,
  • Whether the problems is permanent or temporary
  • and If there is a solution.

• Throughout the process of foreclosure prevention, you must document all the sessions of discussions that take place between you and the loan servicer. For instance, jot down
  • the name of the individual you spoke with,
  • outcome of the discussion,
  • and the date the discussion took place on.
• Additionally, you must keep a track of all the telephone conversations and follow it up with a letter or email. Finally, you must meet all the given deadlines during the process.

Know your mortgage loan

When a mortgage loan is issued to you, you receive many documents of rules and regulations along with your rights and obligations. You must read these documents carefully.  You will be surprised at how many of your doubts will be cleared up just by reading your loan documents. If you are unable to find answers then contact your lender and get them to answer your questions. The loan servicer is responsible for collecting your mortgage payments. You must atleast ask the following questions.

• What is my mortgage balance?
• What is the life of the mortgage loan? Longer mortgage terms may make your monthly payments lower but will you will have to pay more over the life of the loan.
• Is the rate of interest fixed or adjustable?
  1. A fixed rate of interest does not vary, which means that the rate of on your mortgage will be the same for the entire loan term.
  2. If the mortgage loan has an adjustable rate of interest then it is subject to change with the fluctuations in the market. There is a possibility that the rate of interest may increase over the years. If your mortgage is adjustable then you can even turn your loan into a fixed rate mortgage.

• Is there a balloon payment required with my mortgage?
  Balloon payment refers to the final payment which is usually larger than any of your other mortgage payments. In case you are unable to make this payment or refinance your home then you may lose your property to foreclosure.

• Does the mortgage loan include a prepayment penalty?
  A few loans include a prepayment penalty that you may have to pay in case you repay the loan prior to the end of the loan term.  This penalty has to be paid even if you refinance your mortgage to a lower or fixed rate.

Beware of scams

You must take precaution against people who may take advantage of your desperate situation. Such individuals may lure you into their trap just to earn some quick money. To avoid being scammed you must read every legal document very carefully before signing it. Ensure that you understand all the terms and clearly understand the rules and conditions. If you are unclear with the terms then get professional help and advice from an attorney. You can even get help from organization such as the Troubled Homeowner Organization or an HUD approved counselor. For more information on HUD, see ‘Other Resources’ below.

Be careful of individuals who offer you a claim that they can help you out of your situation and remain current on the mortgage. Do not trust anything that seems too good to be true. Before making any deals, you should perform the appropriate background research. Below are a few common scams regarding mortgage foreclosure.

“Mortgage Foreclosure Prevention Experts”: There are a few scam artist who promise to make phone calls and complete documentation work for you in exchange of sky high rates. Very often, the Austin homeowner can complete such tasks without hiring anybody and spending money.  You can also find do it yourself guides and e-books that you can download to assist you.

Lease-Buyback Scams: You must be careful of scam artist who insist that you transfer the deed to their home. Very often, these transfers are concealed as lease/buyback transactions. In this case, the Austin homeowner is promised to keep the house on rent and eventually buy it back. The terms and conditions of such agreements make it very difficult for the owner to re-acquire the house.

Bait and Switch: The scam artist will trick the Austin homeowners to transfer the deed their house. These scam artist lie to the homeowners and trick them into signing the documents that will supposedly help them to convert their mortgage into a status. In reality, the scammer is tricking the homeowner to sign the papers in order to transfer the ownership.

How to combat the scams

Keep in mind all Foreclosure Prevention and Assistance companies are not fraudulent.  There are a majority of companies in the Austin Area and across the country that are legitimate and actually have results in help homeowners.  I would suggest working with a local company in your area.  Therefore you can at least meet the company representatives in person and use your judgment.  Also, perform a thorough background check on the company.  You can perform these searches online.  Make sure if you decide to use a foreclosure prevention company then have them produce a service agreement outlining there services and policies.

Prioritize spending

Your home should be your top priority, so you must stop unnecessary expenses.

Selling your home can also be an option to avoid foreclosure

Sometimes, the lender will put off foreclosure on your home if you have put it up for sale or have a qualified buyer ready to buy your house.  The mortgage company often times will allow homeowner to sell their house at a lower amount than what is owed on the property.  This is called a short sale.  You research online to get more information on the concept of a short sale.  Also consult your tax advisor as you may owe tax if you choose to sell your house.  This is a strong and viable option for homeowners who decide the can not afford the home any longer.  Just don’t walk away from the home and accept a foreclosure on your credit, you can always avoid a foreclosure.

Other Resources

• Troubled Homeowner is a non-profit organization that helps homeowners in difficult situations that may arise during home ownership.  Their website has tons of great articles, guides and videos that will help Texas homeowners. Troubled Homeowner website: http://www.troubledhomeowner.com

• Visit HUD.gov , the website of U.S Department of Housing and Urban Development (HUD). This website will provide information and extra resources to homeowners who have difficulty in mortgage repayment. The website also has a list of HUD- approved credit counseling agencies.

• Federal Trade Commission also have their website: http://www.ftc.gov . This website could be useful as it consists of loads of information on mortgage foreclosure and other problems faced by consumers everyday. FTC is a federal agency that does well to the consumers through education, enforcement, and industry regulation.

• Housing Opportunities Made Equal’s or H.O.M.E can be reached on their website http://www.phonehome.org. It is a non-profit organization of Texas, which fights against discrimination in housing. They assist individuals facing foreclosure and victims of unfair practices by providing educational material.

• In case, you require attorney service in Texas. You can contact the Texas State Bar who sponsor the service, Texas Lawyer Referral Service. If you have been referred by this service to an attorney then you are entitled to have a meeting with that attorney for atleast half an hour at the cost of $35.

• If you are unable to afford the services of an attorney then you are eligible for legal aid. Legal aid offices are non-profit organizations providing free legal advice and representation to individuals with low income. For more information, you can contact the legal aid office in your local area. You will get statewide addresses of legal aid offices on Texas Legal Aid Website.

About the Author

Dwayne Clark is a Chairman of the Board of The Troubled Homeowner Organization. Dwayne helps homeowners in the Austin,Texas area overcome difficult situations that may arise during homeownership.  Dwayne and The Troubled Homeowner Organization believes in the sharing of knowledge and information to help others succeed.  On our website TroubledHomeowner.com, you will be able to find several articles, do it yourself guides and videos that will arm homeowners with the knowledge and power to change their situation.  Don’t hesitate to contact us.  Our organization will do its best to help you solve your Real Estate Problems.

Short Sales and Foreclosure Help

texas foreclosures free