If you’re a REALTOR helping a seller whose is facing a foreclosure situation in Texas AND they have a home equity loan or cash out refinance you can leverage the Texas Constitution to buy you time.
But you need to takes steps immediately when the seller receives the customary “You Have Been Sued” letters. But what does this mean and what do you do?
First thing to tell the seller: Open all your mail. All of it. Every time. Go and pick up EVERY green card mailed to you. Certified mail which is not picked up has the same effect as not picking it up; but you just don’t know what it said.
Second, call someone like us immediately to connect your seller with an attorney. Even if they are broke and don’t have two nickels to rub together. Why? Because proactive steps can be taken to kick the lender back to the curb and buy your seller another 3-4 months before the foreclosure sale date. Simple and straight forward filings by a competent attorney can really put the mortgage company on their heels.
Third, if you don’t have an offer, start lowering the price to secure one ASAP. Time is working against you and many mortgage companies are talking 30-45 days until they can even review an offer.
Fourth, don’t let your seller represent themselves in court for the “suit.” The mortgage companies are too sophisticated and will crush your seller. A rock solid foreclosure specialist attorney will know how to get the mortgage company to pick up most of the tab for your seller.
Fifth and finally, the popular “Produce The Note” strategy will likely be tried by your seller and it can be very effective…sadly it will fall on deaf ears if not presented the right way. They need good reliable information to buy the most time and eventually bring the lender to the table to cut a deal to close out your short sale.
- The Bank Slayer
