Foreclosure in Houston

Houston Foreclosure Laws Attorney

Clausell Law Firm can assist individuals in stopping foreclosures on house and vehicle repossessions. It is important to understand that a mortgage company is able to foreclose on your home if you are overdue on payments. However, they must provide at least 21 days notice in writing of the foreclosure sale. Foreclosure sales are held on the first Tuesday of each month. Therefore, it is pertinent that you carefully pay attention to your mail if you may be past due on payments. Our Houston foreclosure attorneys will verify that you actually received notice, advise you of your rights, and if you may be able to stop the foreclosure.

Houston Property Repossessions

If you have missed payments on a vehicle or other personal property, the creditors are able to repossess the property without a court order. This means that if your vehicle is in the driveway or other easy access location, the creditor may take your vehicle without your awareness. To help prevent this from happening, our Houston bankruptcy law firm will assist you in filing for bankruptcy.

Contact our Houston Foreclosure Lawyers

If you have received notice of foreclosure or face vehicle repossession, it is important that you act quickly. Filing for bankruptcy under Chapter 13 will stop your foreclosure and allow you to get caught up on past due payments.

Excerpts taken from "Facing Foreclosure" – Texas Young Lawyers’ Association and the State Bar of Texas

What are the different types of foreclosures?

In Texas, the type of foreclosure process that is used by a lender depends on the type of debt that is owed. There are two general classes of foreclosure: (1) a non judicial foreclosure; and (2) a judicial foreclosure. There is also a third type of foreclosure that combines parts of the non judicial and judicial foreclosures and is used only for specific types of loans.

Non-judicial Foreclosure
A non-judicial foreclosure is used when the loan was used to purchase the home or to refinance the original purchase loan. In a non-judicial foreclosure, the foreclosure is performed without involving a court or judge. The non-judicial foreclosure is often performed by attorneys hired by the lender. The non-judicial foreclosure occurs at the courthouse on the first Tuesday of the month after at least two notices have been sent to the homeowner. Non-judicial foreclosures are the most common type and will most likely be the type of foreclosure that a homeowner will encounter.

Judicial Foreclosure
A judicial foreclosure generally occurs when a government entity is seeking to collect taxes owed on the property. The government will file a lawsuit with the court seeking to have your property sold to pay for property taxes that are owed. If the government proves that the taxes are owed and the judge signs an order for foreclosure, the property will be sold by the sheriff or constable at the courthouse on the first Tuesday of the month. It is possible that a private lender may choose this method instead of a non-judicial foreclosure, but it is unlikely because it usually takes longer than a non-judicial foreclosure and the lender has less control.

If you are served with a lawsuit seeking foreclosure of your property for failure to pay taxes, it is recommended that you contact an attorney in your area to assist you in filing a proper response. If you cannot afford an attorney and cannot locate a legal aid center to assist you, you should contact the government office that has filed the lawsuit because they may be willing to work out a payment plan or enter into some form of payment agreement. Obtaining legal advice in these situations is strongly encouraged because there are special rules for senior citizens and the disabled that may stop the foreclosure. Also, it should be known that a homeowner has a limited right of redemption for two (2) years following the foreclosure sale, but a premium will have to be paid in addition to the amount owed for taxes and maintenance.

Combination Foreclosure
If a homeowner has received a home equity loan or a loan that was used to pay property taxes, the lender must obtain a court order approving the foreclosure before performing a non-judicial foreclosure. After the lender provides the First Notice (see description below) and the homeowner does not pay the debt owed, the lender must file an application with the court requesting an order of foreclosure.

Unlike a typical lawsuit, the application does not have to be served on the homeowner by a sheriff or constable, but instead can be delivered by certified mail. The homeowner has 38 days to file a response to the foreclosure application. If a response is filed, the court will hold a hearing to determine whether the lender is entitled to foreclosure. If a foreclosure order is signed by the court, the lender will then be allowed to continue with a non-judicial foreclosure by providing the Second Notice (Notice of Sale).

Contact Clausell Law Firm, a Houston foreclosure laws attorney today.