If you are a homeowner in Texas and having trouble paying your mortgage, you may face the very real fact that you might lose your home to foreclosure. Rather than waiting until the situation is out of control, it can benefit you to proactively address the situation while you still have the option to do so.

FindLaw explains that foreclosure is the process by which the institution that loaned you the money for your mortgage takes the home back over, no matter how much equity you have. The foreclosure process can be as much of a headache for the lending institution as it is for you so there are other options you have.

First, you may qualify for a mortgage modification. This means that you can extend the term of your loan or refinance your debt. The benefit of modification is that it can decrease your monthly payment to a point that you can afford to keep your home. When unexpected financial problems arise, this is a valuable option.

Second, you may be able to work with the lender to obtain a partial claim. With this, the FHA insurance fund will make a one-time payment to bring the mortgage current if you immediately begin making your full payments after.

Third, there is the option of a pre-foreclosure sale. This allows the property owner to sell the home for an amount that is less than what you owe on your mortgage.

Fourth, there is the option for a special forbearance. The lender will look at your current financial situation and decide if you qualify for a suspension of payments or a reduction in your monthly amount. If there is a sudden increase in living expenses or decrease in income, this can be a valuable option.

Finally, a last resort option is a deed-in-lieu of foreclosure. This allows you to essentially give the lender the property back. It will not allow you to keep your home but it does help to preserve your credit. If your attempts at selling the house were unsuccessful and you do not qualify for any other option, this may be your best choice.

This is intended for educational purposes and should not be interpreted as legal advice.