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 of a loan from a borrower who has stopped making mortgage payments. This typically occurs when the borrower defaults on their home loan. In Houston, Texas, foreclosure is most commonly conducted via a non-judicial process, meaning it does not require court intervention in many cases. This process allows lenders to repossess and sell the home to recover unpaid debts. The foreclosure process can move quickly in Texas, so it is important for homeowners to understand their rights and obligations if facing foreclosure.

Why You May Need a Lawyer

There are several situations where it may be necessary to seek legal help related to foreclosure in Houston. For example, if you believe that your lender has not followed proper procedures or violated your legal rights, an attorney can help defend you. You may need legal guidance if you want to explore alternatives, such as loan modification, short sale, or deed in lieu of foreclosure. Homeowners who have received a notice of default, notice of sale, or who are at risk of losing their home due to missed payments often benefit from legal advice. If you face wrongful foreclosure, disputes over loan terms, or if your property is being foreclosed due to an error, legal support is especially important to protect your interests.

Local Laws Overview

Foreclosure laws in Houston are governed by Texas state statutes. Key aspects of these laws include that Texas primarily uses non-judicial foreclosure, which means foreclosure can proceed outside of court if the deed of trust contains a “power of sale” clause. Lenders must send a notice of default and intent to accelerate to the borrower, typically giving at least 20 days to cure the default. They must also send a notice of sale, which must be sent at least 21 days before the scheduled foreclosure sale, and the sale must take place on the first Tuesday of the month. Texas law provides for a right of redemption in some but not all circumstances, depending on property type. It is crucial for homeowners in Houston to act quickly if they receive a notice related to foreclosure due to the very short timelines under Texas law.

Frequently Asked Questions

What is the difference between judicial and non-judicial foreclosure?

Judicial foreclosure requires a court process and judge’s approval to foreclose on a property, while non-judicial foreclosure uses a power of sale clause in the deed of trust and does not require court involvement. Most foreclosures in Houston are non-judicial.

How much notice will I receive before my home is foreclosed?

In Texas, you must receive at least a 20-day notice to cure the default and an additional 21-day notice of intent to sell before the foreclosure sale date.

Can I stop a foreclosure once it has started?

It may be possible to stop foreclosure if you catch up on missed payments, negotiate with your lender, file for bankruptcy, or find other legal grounds to contest the process. Time is of the essence so act quickly if you receive a foreclosure notice.

What can I do if I believe my lender is foreclosing illegally?

Contact a foreclosure attorney immediately. If the lender has not followed the proper legal process, you may have grounds to halt the foreclosure or seek damages.

Are there state- or city-specific protections for homeowners in Houston?

Texas law governs the foreclosure process in Houston. While there are no special city protections, there are federal and state regulations that may offer relief, especially during economic hardship or emergencies, such as moratoriums.

What happens if my home is sold at auction?

If your home is sold at a foreclosure auction, you must vacate the premises, and the new owner receives the deed. You may still be liable for any deficiency if the sale did not cover the full loan balance, depending on the circumstances.

Can I get my home back after foreclosure?

Texas law does not generally provide a right of redemption after a non-judicial foreclosure for most residential properties, though there are exceptions for certain property types like tax sales. It is important to seek legal advice if you are uncertain.

What should I do if I receive a foreclosure notice?

Do not ignore the notice. Review all communication from your lender, consult with a foreclosure attorney, and explore all available options including loan modifications, repayment plans, or selling your home to avoid foreclosure.

Will foreclosure affect my credit?

Yes, a foreclosure will have a significant negative impact on your credit score and remain on your credit report for up to seven years, making it harder to obtain future loans or housing.

What is a deficiency judgment, and could I be liable?

If the proceeds from the sale of your home do not cover the full amount owed on your mortgage, your lender may seek a deficiency judgment for the remaining balance. Texas has laws that sometimes limit the lender's ability to collect deficiencies, so legal guidance is wise.

Additional Resources

Houston homeowners facing foreclosure can seek help from several resources:

• Texas Department of Housing and Community Affairs - Offers foreclosure prevention counseling and information
• Legal Aid organizations, such as Lone Star Legal Aid, which provides free legal assistance to eligible individuals
• United States Department of Housing and Urban Development (HUD) - Provides housing counselors and resources for those facing foreclosure
• Harris County Civil Courts - For information on local court procedures related to foreclosure
• Consumer Financial Protection Bureau - Offers tools and advice about foreclosure prevention

Next Steps

If you are facing foreclosure or have concerns about your mortgage situation in Houston, take the following steps:

• Read all mail and notices from your lender carefully and respond promptly
• Contact your mortgage servicer to discuss available options such as repayment plans or loan modifications
• Consult a foreclosure attorney in Houston to understand your rights and protect your interests
• Gather all relevant documentation, including your mortgage agreement, communications from your lender, and any notices received
• Reach out to local legal aid organizations if you cannot afford private legal representation
• Act quickly, as foreclosure timelines in Texas can be very fast and missing deadlines can limit your options