Texas foreclosure filings down in late 2012

According to an analysis by RealtyTrac, the latter part of 2012 brought in a 21.24 percent decline in Texas foreclosure filings from the previous year. The numbers equated to one foreclosure for every 1,295 homes in the state.

Furthermore, lenders completed the foreclosure process on 2,552 delinquent mortgages in Texas over the month of October 2012. This marked a 40.68 percent drop from the number of foreclosure completions reported for the same month in the previous year.

It is good to see a decline in loan defaults and foreclosures. Nevertheless, they still can happen. If you are confronted with a loan default letter or foreclosure notice, it may help to retain legal assistance. There are various strategies of foreclosure defense, and an attorney can help you assert your rights.

The general Texas foreclosure process

In Texas, the main type of foreclosure is the nonjudicial foreclosure process. This means that when the lender retains the title to property in a deed of trust, the lender has the right to foreclose on the property without involving the court. Generally, a power-of-sale clause is included as part of the deed of trust and outlines specific notice requirements and steps involved in a foreclosure.

On the other hand, if the property title is in the name of the borrower and secured by the mortgage note, or if no power-of-sale clause exists, the lender must initiate a judicial foreclosure through the court system.

Before the foreclosure process begins, the lender mails a letter to the borrower, which gives notice that he or she has 20 days to pay the default amount on the loan. If the borrower does not act within this period, the lender can commence the foreclosure process by mailing another letter to the borrower. This note states that the loan has been accelerated, and the full balance is now due. The second notice also indicates that a sale has been scheduled to recover the amount due.

The lender posts notice of the sale at the county courthouse and files a foreclosure notice with the county 21 days prior to the scheduled sale date. The lender also mails a copy of the notice to the borrower at this time.

The sale is conducted as a public auction, and the highest bidder pays for the property in cash. The lender is also eligible to bid on the property. However, it is important to note that in Texas, the borrower's right to the home after the sale does not exist. For this reason, rights must be asserted before the sale is complete.

The importance of retaining an attorney

This is a general description of the foreclosure process . If you face foreclosure, you should know that you do have options. What is most important is that you assert your rights before they dissipate. You may be able to reach an agreement with the lender, modify your loan or pursue other debt-reducing options. A qualified foreclosure defense attorney can help you examine your preforeclosure options.