If you're behind on mortgage payments and facing foreclosure in Austin, you're not alone. Many Austin homeowners face financial hardship due to job loss, medical bills, divorce, or unexpected expenses. The good news is that you have options — and acting quickly is the key to protecting your credit and equity.
Understanding the Texas Foreclosure Timeline
Texas is a non-judicial foreclosure state, which means the process moves faster than in many other states:
- •Day 1-30: Missed payment, late fees begin
- •Day 30-60: Second missed payment, lender contacts you
- •Day 60-90: Third missed payment, lender may file notice of default
- •Day 90-120: Notice of sale posted (must be at least 21 days before sale)
- •First Tuesday of the month: Foreclosure auction at Travis County courthouse
Important: In Texas, the entire foreclosure process can happen in as little as 60 days from the first notice. Time is critical.
Option 1: Sell Your House for Cash
Selling to a cash buyer like House Buyers in Austin is often the fastest way to avoid foreclosure while preserving your credit and keeping whatever equity you've built.
Benefits:
- •Close in 7-14 days — before the foreclosure sale date
- •Keep your equity (minus the mortgage payoff)
- •Avoid the devastating credit impact of foreclosure
- •No repairs, commissions, or closing costs
- •Walk away with cash in hand
Option 2: Loan Modification
Contact your lender to discuss modifying your loan terms. Options may include:
- •Reduced interest rate
- •Extended loan term
- •Principal forbearance
- •Adding missed payments to the loan balance
Pros: Keep your home. Cons: Lengthy process, not always approved.
Option 3: Short Sale
If you owe more than your home is worth, a short sale allows you to sell for less than the mortgage balance with lender approval.
Pros: Less credit damage than foreclosure. Cons: Takes 3-6 months, requires lender approval.
Option 4: Deed in Lieu of Foreclosure
You voluntarily transfer the property to the lender in exchange for release from the mortgage.
Pros: Faster than foreclosure. Cons: Still impacts credit, may not release you from all obligations.
Option 5: Bankruptcy
Filing for bankruptcy can temporarily halt foreclosure through an automatic stay.
Pros: Immediate protection. Cons: Severe credit impact, legal costs, may only delay foreclosure.
Comparing Your Options
| Option | Timeline | Credit Impact | Keep Equity? |
|---|---|---|---|
| Cash sale | 7-14 days | Minimal | Yes |
| Loan modification | 2-6 months | None if approved | Yes |
| Short sale | 3-6 months | Moderate | No |
| Deed in lieu | 1-3 months | Significant | No |
| Bankruptcy | Immediate stay | Severe | Varies |
| Foreclosure | 60-120 days | Devastating | No |
Don't Wait — Act Now
The sooner you take action, the more options you have. Contact House Buyers in Austin today at (512) 675-3722 for a confidential consultation. We've helped hundreds of Austin homeowners avoid foreclosure and move forward with dignity.