A property foreclosure is the most haunting situation for anyone who has borrowed a loan against property or mortgaged it. Today, in this article, we are about to provide an A to Z guide to San Antonio foreclosure auctions and everything related to it, like how it works, how to find foreclosure auctions near you, and how to stop foreclosure San Antonio.
What is the meaning of foreclosure auction in real estate
Real estate foreclosures can happen due to various reasons like property owner unable to pay the taxes, or the house owner unable to pay homeowners association fees, or the property owner has borrowed a loan from a bank or a mortgaged investor, and the lender has to possess the property to compensate the borrowed money or taxes.
Effects of Foreclosure on Sellers of San Antonio
#1 Decline in Credit Score – Whenever a property undergoes foreclosure, the owner’s credit score declines, making it tough for future purchases like a new house, car, etc. Moreover, after a successful foreclosure, the property owner will not be able to mortgage a house for at least four years.
#2 Value Depreciation – A foreclosure in San Antonio, TX, depreciates the overall value of the house in terms of the selling price.
#3 Loss of House and Memories – San Antonio foreclosure auction is responsible for the greatest loss of a person’s life, their place of living! Along with the home, a person also loses a million memories they had living in the house.
#4 Depression, Anxiety and Stress – Not being able to pay the instalments on time and thinking about foreclosure auction is itself very disturbing for an individual; apart from this, it brings health problems like anxiety, overthinking and stress, which can lead to serious heart-related problems.
How do San Antonio Foreclosure Auction Works
San Antonio foreclosure auction typically operates in a non-judicial manner, and it takes around six months to process the foreclosure process in Texas.
#1 Missing First Payment
Whenever a borrower misses the first payment, the lender usually provides 10-15 days of grace time limit to pay the installment. If the lender is still unable to pay the installment amount, the bank or lender adds a late fee in the next installment.
#2 Also Missing Installments of the Next 2 Months
This is the most crucial period for the mortgage-holder because most mortgage servicers provide the deadline of paying late installments during this period only. The borrower will be receiving calls, messages, and mail during this period to pay the non-paid installments along with late fees to avoid foreclosure. If you have taken a loan against property or mortgaged your home as collateral, you must pay the installments and late fee within the first three months. (This might vary according to the mortgage service provider)
#3 Pre-Foreclosure Loss Mitigation Review
Legally every mortgage servicer must wait for 120 days for filing the legal process of foreclosure after missing the first missed payment.
#4 Breach Letter
After four months, Mortgage Servicers have to send a “breach letter” according to the legal deed of trust, a disclaimer to the borrower that the mortgage is in default before accelerating the loan. Within a given deadline, the lender has to initiate the foreclosure in San Antonio.
#5 Notice of Auction
The mortgage servicer or lender has to send a notice of auction at least before 21 days of the San Antonio foreclosure auction.
#6 Foreclosure Auction
The first Tuesday of every month is the pre-fixed day of the foreclosure auction. The mortgage servicer will sell the property to the highest bidder at this auction. This auction takes place at the local county courthouse. Also, if the foreclosure does not satisfy the borrowed amount, a deficiency judgment has to be made against the borrower.
How to Avoid Foreclosure in San Antonio, Texas
To stop an San Antonio foreclosure auction of your property, you can try a few things before actually giving up on your hopes:
#1 Contact the Bank/Mortgage Servicer or Lender
No bank or mortgage servicer wants foreclosure on you; it destroys the relationship between you and the bank and stops its monthly income with you as interest. Before panicking, you must show the bank that with a little help or deferment, you can bring the loan on track and save your property because every bank has some programs to reduce the mortgage burden from the borrower.
#2 Sell Your House
If you have a buyer or know someone who is a real estate investor, you must sell your house in cash to avoid foreclosure. Selling the house by yourself in a shorter time frame is not an easy task; you must research and get the real market value of your property.
#3 Contact the Local Real Estate Experts
Local real-estate experts like “sell my house fast” offer the selling of houses about to undergo foreclosure auction in San Antonio within 24 hours that too in cash. The borrowers can avoid the credit score crash down and loan amount deficiency judgment.
We hope this guide on San Antonio foreclosure auctions will help you or anyone you know to understand the process of property foreclosure and will help to avoid it!