FORECLOSURE PROCESS – LOUISIANA and TEXAS

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Foreclosure is one of the scariest things a person can go through and comes with some highly devastating effects. Not only will you lose your home, but your credit score will surely tank. You may think, “Okay, I’ve learned some valuable lessons. I’ll move on from this.” This may be true, however, moving on after a foreclosure can prove more difficult than you think. A foreclosure on your credit report will make it almost impossible to secure another mortgage on another home for upwards of 7 years. You’ll be forced to either rent for the next almost decade or stay with family or friends. It can even impact your livelihood and your ability to obtain certain employment positions that require a financial background check. Bottom line, the whole ordeal can be extremely stressful and embarrassing.

Texas and Louisiana both follow a non-judiciary foreclosure process, making it particularly fast and ruthless. Mortgage companies can start the foreclosure process as soon as you are 90 to 120 days behind – only THREE or FOUR missed payments! After that the process of foreclosure can begin.

LOUISIANA PROCESS

The mortgage company will first have to file a foreclosure lawsuit in a court within the parish where the property is located. This type of lawsuit is either called a “Suit on a Note” or “Petition for Executory Process.”
They will get a “Writ of Seizure and Sale.” This is an order from a judge telling the Civil Sheriff to sell your property through a public auction. The time between the lawsuit filed and the Sheriff auction can be as little as 60 days! 
The mortgage company is NOT required to serve you with a notice of the lawsuit or the seizure by the Sheriff. To comply with Louisiana law, they are only required to post a notice in a local newspaper. You may not even know your property is for sale!

TEXAS PROCESS

The majority of Texas mortgages include a “power of sale” clause. This pre-authorizes the sale of the property without the lender needing to go though any judicial process. If in the unlikely event that this clause does not exist the Mortgage company would first need to file a lawsuit to obtain a court order to foreclose.
Before being able to proceed with the foreclosure, a letter of demand must be mailed to you. This letter will let you know that you have twenty days to pay the delinquent payments before the foreclosure process will begin.
After this the lender will either file a lawsuit or in the case of a “power of sale” clause – file a notice of foreclosure to the county clerk. The notice of foreclosure must also be mailed to you and posted on the courthouse door. This must take place at least twenty-one days before the auction.

FOR BOTH STATES

Immediately after your property is sold at auction, you no longer own the property and you will be forced by the Sheriff to leave sometime after the sale. In most cases, you are not given any notice to vacate and there is no eviction proceeding in court.
It is nearly impossible at this point to get your property back as there is no redemption period. Your only option would be to buy it back from the purchaser at fair market value. Your credit will have also been lowered at this point making it extremely difficult to get any sort of loan to buy it back.

Don’t wait until you are foreclosed on and evicted from your home! We can offer SOULutions for your specific situation. In most cases, we can buy your house from you for CASH all the way up until the Sheriff sale. But, don’t wait to call us! The sooner you call, the better we will be able to help. We know how to work with the mortgage lenders, foreclosure attorneys, and sheriff’s office to keep your home from going to foreclosure. Please don’t wait to call – Let us help you turn what could be a devastating experience into a positive one.

For Louisiana: www.ibuylouisianahomes.com 225-800-4445

For Texas: www.yoursouldtexas.com/houston 832-956-0444

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