If for any reason we aren't successful in stopping the bank's initial foreclosure attempt involving a client's home equity loan, we'll gladly refund 100% of the fees paid.
1. Assess Your Situation
You may be facing foreclosure due to a loss of employment, personal or family illness, dissolution of a marriage, property damage from a storm, or overwhelming debts. Our team will take the time to understand your unique situation - we never apply a "cookie-cutter" approach to foreclosure defense.
2. Evaluate Your Options
After understanding your unique needs, we'll make specific recommendations and provide options that give you the best chance of achieving your desired outcome in the shortest amount of time. Our goal is to provide a solution that minimizes your emotional and financial stress as much as possible.
3. Implement Your Winning Defense
Following a comprehensive audit of your mortgage documents, we'll mount an aggressive, proactive defense that will slow down or halt the foreclosure process while protecting your legal rights. Then we'll work to negotiate the best possible resolution in accordance with your desired outcome.
You've received a Texas foreclosure notice form from your District County Court stating that you've been sued by your lender and you don't know what to do. Perhaps you've tried to work out a resolution for weeks, months, or even years with your mortgage company, but to no avail. You aren't necessary litigious - you just need help slowing down the foreclosure process so a resolution can be negotiated. If you are in Houston, Dallas / Fort Worth, Austin, San Antonio, or anywhere in the great state of Texas, we can help you obtain a loan modification to keep you in your home or a short sale to help you exit gracefully.
Or maybe you suspect your mortgage company hasn't been completely honest and fair with you. After examining thousands of mortgages over the years, we discovered that 87% of all home equity loans contain one or more errors. That means you are likely a victim of predatory lending, and if so, your loan is invalid. You want justice; we can help.
Texas has traditionally had very strong state laws to protect homeowners. In fact, the state didn't even allow homeowners to borrow against the equity in their homes through Home Equity or HELOC (Home Equity Line of Credit) Loans until 1998.
Since 1998, hundreds of thousands of Texans have borrowed against the equity in their homes to finance home improvements, consolidate debt, pay for college, or whatever else they wanted to do with the proceeds. They did so with the assurance that they were protected by the most homeowner-friendly protections in the nation. But since then, banks have lobbied hard to water down those protections with various amendments that benefit themselves over homeowners. Read about how Home Equity borrowing in Texas forever changed on January 1, 2018.
Surprisingly, most Home Equity Loans prior to 2018 do not comply with the strict consumer protections that were initially written into the Texas Constitution. In fact, since 2010 we've examined thousands of loans (at no cost to our clients) and discovered that about 87% of them contain one or more violations!
When violations are brought to the attention of the bank, the law requires they "cure" or fix all violations. Legally, they are given fair opportunity to "make things right" with minimal consequence to them.
Sometimes they do the right thing and make the borrower whole, but often times they refuse to do so - ignoring their legal obligation. In these instances, you, as the borrower, may be entitled to cash compensation and/or your lender may be required to return all your payments and void your lien so that you own your home without owing anything on your mortgage!
If you have a Texas cash-out refinance loan (otherwise known as a home equity loan, home equity mortgage, reverse mortgage, or home equity line of credit (HELOC)), the foreclosure process is different than on a purchase loan or rate-and-term finance mortgage.
Article 16, Section 50(a)(6) contains the requirements for home equity lending, i.e., the extension of credit secured by a lien on a borrower's homestead evidenced by a "Texas Home Equity Security Instrument" rather than a Deed of Trust. In the event of default, a home equity lien may be foreclosed only by means of a court order which provides a specific date for the sale to take place after the expedited foreclosure process is followed.
Brief overview of the Texas home equity foreclosure process:
1. Notice of Default - Once your payment is late (typically by 30 days or more) the lender will send a Default Notice. It notifies you of the amount due and allows you at least 20 days to cure the default. Once a notice of default is received, the borrower should take immediate action to bring the loan current or seek professional help in resolving the situation.
2. Expedited Foreclosure Application - If the default is not cured within the allowed time, your lender must file a Expedited Foreclosure Application which asks the court for an order allowing the foreclosure. You then have 38 days to provide a response to the court or the judge will likely sign the order.
If your file a response, the court will set a hearing that, like the response, is limited in scope. The only thing a judge will consider is whether the lender can get an order allowing it to proceed with foreclosure under the law and the terms of the loan agreement. It's best to have an experienced foreclosure defense attorney draft the response to the court so you have the best chance of slowing down the foreclosure process or halting it altogether.
If the court grants the lender’s application at the hearing, the foreclosure will proceed. The lender will then send the borrower a foreclosure sale notice.
3. Foreclosure Sale Notice - Now that the judge has signed the order allowing foreclosure, the lender must send a notice of the foreclosure sale to the borrower by certified mail at least 21 days prior to the sale. If you haven't contacted a foreclosure defense attorney yet, it's time to make that call. The foreclosure can still be stopped - without having to file bankruptcy - but you're running out of time. Schedule your no cost, no obligation consultation with The Lane Law Firm here.
4. Auction - Foreclosure sales are typically held the first Tuesday of each month between 10:00 a.m. and 4:00 p.m. at the county courthouse, although there are important exceptions. Once the property is sold, there is no right of redemption and unwinding the foreclosure is very difficult, if not impossible.
This information is general in nature and is for for educational purposes only. Seek legal counsel regarding your individual needs and circumstances before taking any action.