“Help, our family home is in foreclosure! What are our legal rights?” If unforeseen financial trouble has hit your family and you are facing the reality of foreclosure on your family home, you need to be aware of your legal rights. Feelings of anxiety and impending doom may cause you to want to ignore this crisis, but now is the time for action. Chrisman, Ramsey & Foster PC as answered two very important questions pertaining to property foreclosure in the state of Texas.
- 1. Can a bank foreclose on my property without an order from a court if I fail to pay my mortgage?
Yes. After the opportunity to cure has expired under applicable law and the loan agreement, contract, or lien to be foreclosed the lender may file an application for an expedited order to foreclose. There are several statutory requirements that a lender must comply with in order to obtain an expedited order to foreclose and courts require strict compliance. If a party being foreclosed upon files a separate, original proceeding that puts a matter relating to the origination, servicing, or enforcement of the loan agreement prior to 5:00 p.m. on the Monday before the scheduled foreclosure sale the proceeding is automatically stayed. Any sale of the property after the automatic stay is in effect is void.
- 2. How long does a bank have to foreclose on real property?
A sale of real property made pursuant to a power sale contained in a mortgage or deed of trust must occur within four years of the date the action accrues. The date of accrual will typically be the date the bank accelerated the loan. If a sale has not occurred within four years of accrual the real property lien and power of sale to enforce the lien becomes void.
Chrisman, Ramsey & Foster PC has extensive experience with all areas of real estate law and are ready to help you with your real estate needs. We litigate real estate disputes, including foreclosure, boundary disputes, contested appraisals, suits arising out of breach of contract, condemnation proceedings, failure to close, title defects, breach of warranty, construction defects, liens, adverse possession, condemnation and recording issues.
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