Selling a Foreclosed Home in Austin TX?

home being sold in foreclosure

Being in danger of losing your home can be a scary situation. You may find yourself in these circumstances for many reasons. Perhaps you’ve recently suffered financial hardship due to illness or losing a job. Maybe you had an adjustable-rate mortgage that has reset to a rate you can no longer afford. However, foreclosure is not your only option, and there are other routes that preserve your credit and help you avoid filing bankruptcy.

When you are falling behind and in financial distress, two of your main options will be foreclosing or quickly selling. If you are facing foreclosure on your home, a short sale can help you avoid foreclosure and get you cash quickly. A short sale occurs when a homeowner facing financial trouble sells his or her house for less than the amount due on the mortgage. This can be a good option in the short term, as it avoids the bad impact on your credit score. Doing the short sale deprives you of the money you deserve. You need to stop foreclosure if possible.

We Buy Austin Foreclosures buys Austin homes in any condition. We typically close within 1 to 3 business days, so you will not spend much time worrying about your finances. No need to do anything to your house in need of repair before selling – we’ll take care of all that.

We know this can be an overwhelming position to be in, but we are here to help! To stop foreclosure and sell your house fast, reach out to to get the ball rolling.

What is Foreclosure?

foreclosure on house with boards on it

Foreclosure is your mortgage lender taking back your home if you fail to pay.

When you got the mortgage on your home, your home was used as the collateral. There was an agreement between your mortgage lender and yourself. If you did not pay on your home for any reason, there would be consequences. At some point, your lender would repossess your house.

If the mortgage holder default, the lender will try to terminate their connection with them. The longer the mortgage goes unpaid, the worse it is for the lender. It affects their financial standing and credit. That means lenders will try to expedite the process of money reclamation.

There are two types of foreclosure that can fall onto a defaulter.

Nonjudicial Foreclosure

This is the most common type of foreclosure. In this version, the mortgage lender lets the occupant of the home know that they have failed to pay. After this, the lender will notify the resident that they will be selling the home.

This process is only legal if it is included within the contract that a person signs before gaining the mortgage from the lender. If a mortgage lender attempts to foreclose on the house without a specific stipulation knows as the of their rights to do so within a pre-existing contract, they are performing illegal acts.

This stipulation is known as a power of sale clause. In clear terms, the power of sale clause specifically states that, if a person defaults on their house payments, they can sell the home to repay the mortgage debt.

Judicial Foreclosure

This foreclosure is less frequent and with good reason. If a mortgage lender does not include a power of sale clause in the contract, the only way that they can foreclose on a home is under the supervision of a court. While more companies (and clients) participate in non-judicial mortgages, almost every state requires the judicial foreclosure system to exist. Similarly, the stipulations for judicial foreclosure requirements vary from state to state.

Within the confines of the court, the lender is required to sue the borrower. Once there, the court will rule who is at fault (typically the borrower) and require the borrower to pay. The lender will then proceed to auction the house.

Judicial foreclosure is much rarer because of the financial cost. Any borrower who has a lawsuit brought against them can usually not afford the cost of litigation. Therefore, non-judicial foreclosure is built into the contract of a mortgage prior to mortgage signing. It is simply easier for all parties to avoid litigation as much as possible.

What Happens After Foreclosure

Upon foreclosure, several things happen. Most notably, the borrowers must leave the area that has been foreclosed. They have defaulted on their payment, so they are no longer entitled to live in the house. When clients refuse to leave, mortgage lenders can evict borrowers, forcibly removing people from their homes.

Once evicted, the borrower must gather funds, find another living space, or declare bankruptcy. There is little help offered to those that have been foreclosed upon. Since the housing bubble burst, some mortgage lenders have been encouraged to renegotiate mortgage terms instead of foreclosing. While this has been more and more popular, defaulting borrowers still run the risk of losing their house. wants to make sure none of this happens to you. You are better than your financial state. If you want to sell your house, contact us now so we can get you back on your feet.