In an earlier post on foreclosures in Houston neighborhoods, I discussed how foreclosures had seen an increase in the Houston real estate market. Although not at the alarming rate seen in other cities. Still, they do exist and they effect a wide variety of Houston home prices. It seems no Houston neighborhood is immune. So what is a Houston homeowner to do if your finances begin to get out of control or you can no longer make their house payments. If you are in this predicament, here are some valuable tips to consider!

10 Tips Every Houston Homeowner Needs to Help Possibly Avoid Foreclosure!

  1. If you have gotten behind on your mortgage, don’t ignore your lender’s phone calls and letters. Taking the “bury your head in the sand and hope the problem will go away” approach will not work.
  2. Contact your lender and explain why you have been late with your house payments. If you have lost your job or you are overextended, be honest and ask for help.

  3. When you receive a letter or certified letter from your lender, open it and respond immediately! Often these early letters contain solutions that can help you catch up with your payments. The longer you put off communicating with your lender, the more difficult it will be to arrive at a solution with them.
  4. Know your rights as a homeowner. That means pulling out your deed of trust and reading it. If you find it difficult to understand the legalese in your deed of trust, contact Jim or myself.
  5. We also encourage you to understand the Texas real estate laws surrounding foreclosures. That way you will be able know your options. You may want to explore the option of a Houston short sale to avoid the sting of foreclosure on your credit.
  6. Prioritize your spending habits. First and first most, pay for your health care and your personal needs (not wants). Drop the cable, forget about going out to eat. Consider taking on a second job. Be creative and look for ways to cut the fat out of your budget.
  7. Do you have any assets that can be used in an emergency to help you catch up on you payments?
  8. Be very careful about dealing with Foreclosure Prevention Companies.
  9. Don’t sign your deed over to anyone without first consulting an attorney. You may sign over ownership of your Houston home without knowing it.
  10. Contact us and we will review what real estate options you have. As licensed Houston REALTORS®, we gladly abide by the NAR Code of Ethics so your best interest come first.

How has foreclosures effected your Houston neighborhood?