The Greater Fort Worth Association of REALTORS® knows how devastating foreclosures can be on homeowners. Foreclosures can significantly affect a person's ability to qualify for credit in the future and should be avoided at all costs.
When foreclosure looms, there are steps that can be taken to avoid it.
What should I do?
You may be considered for the following:
Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
You may be able to refinance the debt and / or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.
Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. You may qualify if:
When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.
This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. You may qualify if:
Deed-in-lieu of Foreclosure
As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure. You may qualify if:
This information was provided by the U.S. Department of Housing and Urban Development.
Tips to Avoid Foreclosure
Other Foreclosure Related Information (HUD)
What do I need to bring to a loss mitigation counseling session?
Loss Mitigation – Literally means to reduce loss. For the foreclosure process, it is the lender's attempt to recoup as much of the loan value as possible.
HUD Approved Counseling Agencies in Tarrant County
These housing counseling agencies are free of charge.
CCCS of Fort Worth
2100 N. Main St., Ste. 224
Fort Worth, TX 76106
City of Fort Worth Housing Department
1000 Throckmorton St.
Fort Worth, TX 76102
Debt Education and Certification Foundation
114 Goliad Street
Benbrook, TX 76126
Housing Opportunities of Fort Worth
1065 West Magnolia, Ste. B
Fort Worth, TX 76104
Tarrant County Housing Partnership, Inc.
Fort Worth, TX 76107
Other Housing Counseling Opportunities
Hope Now Alliance – Includes a number of counseling organizations, which consists of all HUD intermediaries that have offices across the United States. All counselors affiliated with the Hope Now Alliance are HUD certified and services are free of charge.
1-888-995-HOPE or www.hopenow.com