Avoiding Foreclosure In Houston

Though our office does not generally practice in the area of avoiding foreclosure, we have consulted with some clients here in Houston who have avoided foreclosure of both personal and investment real estate. Generally, they have done so by doing a few things:

1. Staying interested in the property. No matter how poorly certain collectors may treat you, it is important that you make it understood that you are interested in keeping the property. If you abandon the property, or if the mortgage company perceives that the property is abandoned, they will change locks on the property…yes, they have this right. They can also seize the rents on investment property, though I have never been made aware that this has happened to any of our clients. One of our clients had a perfect payment history on an apartment complex. One day, he decided that the high interest rate on his mortgage was making the property too unprofitable. He stopped paying, but he did not stop talking to them. He told them many times that he was interested, but that the rate made it impossible for him to continue. They dropped his rate from 10% to 5% after two or three months of him failing to pay, and after an extensive application process.

2. The main concern of the lender is whether or not you can afford to pay for the new deal that they might be able to make with you. They want to know that you will be able to make the new, lower payment, if they decide to lower your rate. The unemployed or people who can’t prove their income will likely not be considered until they can prove their income. Those who can prove their income will have to fall into the “debt ratio” (which is actually a percentage and not a ratio) that the mortgagee’s guidelines allow.

Every case is a little different. Sometimes it depends more on the competency of the mortgage company’s employees. In my experience, there is very little else that is standard in the process of trying to save a home from foreclosure.

There are some non-profit orgs and government agencies which may be able to help. NACA is one such organization. I have not feedback or frame of reference for these programs. My advice is to work it out with your mortgage company if possible.