Friday 19 December 2014

Avoiding foreclosures in Houston and knowing necessary precautions



Foreclosure happen due to the borrower’s inability to repay the loan or mortgage payments on time, the lender files a Notice of default against them and they are given a time to make the outstanding payments, failing which, their house is taken away by the lender either directly or the profits from sale proceedings of the house are passed on to him/her. Different states in the US have different laws for foreclosures but their general aim is to give both borrowers and lenders a fair chance to negotiate and come to a harmonious solution.

Approaching foreclosures can be a very problematic time for lenders and they do tend to lose their minds over the thought that their house may be soon snatched away from them, leaving them homeless. Foreclosures commonly occur when a person is already in a fiscal crisis and when more money is demanded from them within a short time; many go into depression or even commit crimes to get out of the situation; many even fled away. 

Due to utter embarrassment and ignorance, many do not contact their lenders; losing the chance of negotiating with them to alter their agreement or explain their situation, which perhaps is the biggest mistake on their part. Many even don’t believe that their lender can help or have a notion that it will accelerate the foreclosing process of their home.

There are many reasons behind the large number of foreclosures happening in the United States of America in recent years. It is truly shocking to know that more than 40 percent of US homes spend more than they earn annually, which means that they take loans and mortgages without having the proper means to repay them. Hence they periodically miss payments, leading to the possibility of foreclosures.

If we look for the prime reasons why people fall into such situations, we can understand that what these people are going through. Job losses, medical emergencies, non availability of any savings or credit or recurrent refinancing constitute the major share of reasons of foreclosures in the US.

The situation in Houston, Texas is quite alarming, though there is very effective machinery for avoiding foreclosure in Houston. To add to the ignorance of people, there are many scamming professionals who claim to help you with the help of ‘secret laws’ and walk away with your house instead.

Therefore, strict laws are being formulated to protect the interests of both lenders and borrowers in Houston. It is often the borrowers who are the scam artists, lending money from banks, never to return again which leave banks with huge losses; hence laws in Texas cannot be one-sided.

The internet often gives you the best tips on how to avoid public foreclosure though professional help is always recommended. A good lawyer or house councilor can help you negotiate with the lender and provide you with a host of options.

They can also help you in explaining your situation to the court and even buy you more time. Hence with the right knowledge and guidance you can stop foreclosures now and regain your house.

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