Best Foreclosure Lawyers in Houston

About Foreclosure Law in Houston, United States

Foreclosure is a legal process through which a lender attempts to recover the balance owed on a defaulted loan by taking ownership of the mortgaged property and selling it. In Houston, foreclosure law is primarily governed by Texas state law. The process involves specific steps that must be followed to ensure compliance with legal standards. These steps offer protections to homeowners while also ensuring that lenders can reclaim owed debts.

Why You May Need a Lawyer

There are several situations where a homeowner facing foreclosure might need the help of a lawyer. Here are some common scenarios:

• You have received a Notice of Default or a Notice of Sale, and you need to understand your rights and options.
• You believe the foreclosure is unjust or there has been a violation of procedures.
• You want to explore alternatives to foreclosure, such as loan modification, short sale, or deed-in-lieu of foreclosure.
• You wish to file for bankruptcy to stop the foreclosure process temporarily.
• You need assistance in negotiating with your lender.
• You are facing dual-tracking (where a lender pursues foreclosure while simultaneously considering loan modification).
• You want to participate in a foreclosure mediation program.

Local Laws Overview

In Houston, Texas foreclosure laws are governed primarily by the Texas Property Code. Here are some key aspects:

• Non-judicial vs. Judicial Foreclosure: Texas is predominantly a non-judicial foreclosure state, meaning foreclosures are handled outside the courts, making them faster than judicial foreclosures.
• Notice Requirements: Homeowners must receive a Notice of Default and have at least 20 days to cure the default. If the default is not corrected, a Notice of Sale must be issued at least 21 days before the sale date.
• Right to Reinstate: Homeowners in Texas have the right to reinstate their mortgage by paying off the overdue amount plus any fees before the foreclosure sale.
• Sale Process: Foreclosure sales in Texas usually occur on the first Tuesday of every month and are typically held at the county courthouse.
• Deficiency Judgments: After a foreclosure sale, lenders can seek a deficiency judgment for the difference between the loan amount and the sale proceeds.

Frequently Asked Questions

What is foreclosure?

Foreclosure is the legal process where a lender takes possession of a property due to the borrower’s failure to keep up with mortgage payments.

What is a Notice of Default?

A Notice of Default is a formal public notice that a borrower is behind in their mortgage payments and is in danger of foreclosure.

How long does the foreclosure process take in Houston?

The non-judicial foreclosure process in Texas can be relatively quick, often taking about two to three months from the initial Notice of Default to the sale of the property.

Can I stop a foreclosure once it has started?

Yes, there are several ways to stop a foreclosure, including reinstating the loan, negotiating a loan modification, selling the property, or filing for bankruptcy.

What is a deficiency judgment?

A deficiency judgment is a court judgment requiring a borrower to pay the remaining balance owed on a loan after the foreclosure sale proceeds have been applied.

Are there alternatives to foreclosure?

Yes, alternatives include loan modification, refinancing, short sale, deed-in-lieu of foreclosure, and bankruptcy.

What legal protections do homeowners have against foreclosure in Houston?

Homeowners have the right to receive proper notice, the opportunity to cure defaults, and the ability to seek alternatives like loan modifications or other remedies.

What happens to my credit score if my home is foreclosed?

Foreclosure can severely impact your credit score, lowering it by at least 100 points and staying on your credit report for seven years.

Can I sell my house if I am in foreclosure?

Yes, you can sell your house up until the time of the foreclosure sale, potentially avoiding the adverse effects on your credit.

What should I look for in a foreclosure lawyer?

Look for a lawyer with experience in foreclosure defense, a good understanding of local laws, a successful track record, and the ability to negotiate with lenders.

Additional Resources

Here are some resources that can be helpful:

• Texas Attorney General's Office
• U.S. Department of Housing and Urban Development (HUD)
• Texas Foreclosure Prevention Task Force
• Consumer Financial Protection Bureau (CFPB)
• Local Legal Aid Organizations in Houston

Next Steps

If you find yourself facing foreclosure and need legal assistance, here are some steps you can take:

• Gather all your mortgage documents and any correspondence from your lender.
• Contact a foreclosure attorney in Houston to discuss your situation and explore your options.
• Consider reaching out to local legal aid organizations for additional support and guidance.
• Stay informed about your rights and responsibilities throughout the foreclosure process.
• Evaluate all potential alternatives to foreclosure with the help of a legal professional.