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How to stop eviction after foreclosure.

     Being foreclosed on by your lender creates considerable stress on a family.  Being evicted even more so.  That being said there are ways to stall the process whether you are a homeowner or a tenant who resides in a foreclosed property.  The subject of this article revolves around homeowners who have been foreclosed on and who may want to stay in their home after foreclosure.  Some of the options explained here should be handled by a licensed attorney who specializes in wrongful foreclosure and eviction defense.

    

     Laws vary from state to state.  This writing will cover the eviction process after foreclosure in the State of Texas.  Please refer to laws of civil procedure in the state where you live to avoid any problems or confusion.

    

     Texas foreclosures are always on the 1st Tuesday of the month, rain or shine.  Regardless of whether that Tuesday is a holiday like Independence Day or New Years Day, the sale is always on.  It is always best to consult a stop foreclosure attorney prior to a foreclosure sale rather than after. 

    

     There are multiple options available to stop a foreclosure sale.  The most common options used are bankruptcy and wrongful foreclosure litigation.  Both are realtively expensive.  Prices for a Chapter 13 bankruptcy usually run around $3700.  That does not include the hit that you take on your credit report for the next 10 years.  Wrongful foreclosure litigation starts around $3500 and monthly premiums can run between $1000 and $2000. 

    

     One process that our firm has used with great success is the Trustee Challenge.  The Trustees are attorneys or companies that perform the duties of selling your home on the courthouse steps.  The Trustees have some degree of authority and flexibility when it comes to selling your home. Trustees would like you to believe that they have no say in whether your home actually gets sold or not.  But the reality is, they can actually stop the sale if they feel that the bank or their law firm could be held liable for a mistake.  To discuss the details of our unique challenge process call our office (281) 397-3703.   

    

     The eviction process after a foreclosure will vary depending upon the new owner.  There are three things that can happen on the courthouse steps the day of the sale. 

 

 

  1. Property not sold - property is pulled from the sale for some reason by the Trustees.

  2. Property sold back to bank or lender - this can occur for several reasons including that the minimum bid set by the seller was not met.

  3. Property sold to 3rd party buyer - seller's minimum bid was met and the property went to the highest bidder

 

Property not sold - Property may have been pulled due to notice of error" or other issue in which the Trustee felt that it was not advisable to sell the home.  ie bankruptcy, lawsuit combined with a temporary restraining order (TRO).  So, in this case you live to fight another day.  No foreclosure sale - no immediate problems.  You will however want to use the time until the next sale date to find a foreclosure attorney.  Don't make the same mistake twice.  Get some legal representation before your property goes back on the list.

 

Property sold back to bank - When no one hits the minimum bid set by the bank, the bank repossesses the home.  There are no excess funds if the property gets sold back to the bank.  In this case you should also look for legal representation.  It is much easier for an attorney to negotiate with the Bank's attorneys.  You are at a distinct disadvantage if you try to contact the Bank's attorneys.  By using an attorney who specializes in foreclosures, additional time and "cash for keys" funds can be negotiated.

    

Property is sold to 3rd party - This is the most dangerous option that can occur at a foreclosure auction.  The 3rd party buyer is usually at your front door the day of the sale or the day after.  Typically this first visit includes the standard "3 day notice to vacate" the property.  Under this scenario, the eviction process in Texas looks like this:

 

 

  1. 3 Day Notice to Vacate

  2. Citation Served by Constable to appear in JP Court

  3. File Written Answer at JP Court to Avoid *Possession Bond

  4. Show up at JP Court

  5. Judgment Granted by JP Court Judge

  6. File Appeal with JP Court

  7. File Written Answer in County Court if you missed JP Court answer.

  8. Attend County Court

  9. 5-10 Days to Vacate Property

 

This information is not a substitute for legal advice.  You should employ the services of a foreclosure attorney to assist you.