Houston Foreclosures: Foreclosed Homes For Sale, Resources, Guide

houston homeAre you familiar with the foreclosure process in Houston?  It’s important to be familiar with Texas laws either as a homeowner to help you avoid this process, or as a buyer potentially looking to acquire discounted real estate.

What is a Foreclosure?

In Houston, Texas banks or lenders have a legal right to foreclose on a home if a home owner has missed their mortgage payments. By foreclosing on a home, they are seeking to regain some of their capital by selling the home either in an auction situation or through the HAR multiple listing service (MLS).

In extreme foreclosure cases, the property may not be worth enough to completely cover the borrower’s debt to the lender. In this case, not only will their property be taken away from them but they will also have the outstanding balance due to the lender.

Two Types of Houston Foreclosures

In Houston there are two types of home foreclosures, should the lender decide to go through with proceedings. The first type is known as “deed in lieu of foreclosure,” to pay for the missed mortgage payments. This type of foreclosure will be agreed upon in a contract between the homeowner and the lender and both parties are able to agree upon a “win-win” situation.

The more common type of foreclosure is when the home owner is not able to meet the demands of the bank and the parties are not able to amicably resolve the situation.  Here, the property goes to auction that is overseen by a court officer. This type of foreclosure will often allow the homeowner to keep any equity that they have built in the home if the home is sold for more than the outstanding debt.

Problems for the Homeowner

Typically, going through a foreclosure process creates a number of problems for the defaulting homeowner.  One, the letters, calls and demands from the lender can cause a tremendous amount of stress.  Two, going through a foreclosure situation is a very negative event on someone’s credit report.  Three, typically any “home equity” that the person had on their house is usually wiped away.

Houston banks and lending companies will send notices once a homeowner misses several mortgage payments. Once a notice is received, it’s important that the homeowner contact the lender to arrange for payment. Houston lenders can sometimes be  understanding and will often review the homeowner’s financial situation before making any drastic decisions. Lenders don’t usually want to foreclose either as it means the added cost and time of selling the home themselves. Therefore, the homeowner and the lender should work together to devise a plan that does not include foreclosure.

Potential Options to Avoid Houston Foreclosures

A Partial Claim is an option that will give the homeowner an interest-free loan. This loan will be used to cover the mortgage payments and the lender will often work for the homeowner in helping them get this loan. To qualify, the homeowner must have missed at least four mortgage payments, but not exceeded twelve missed payments. The loan needs to be obtained before the home is in foreclosure status and the homeowner needs to be able to begin making payments in full immediately.

Special Forbearance is a process in which the lender and homeowner will meet and attempt to make an arrangement that is suitable to both of them for repaying the loan. The lending company is often the main force in these discussions and the options available will greatly depend on them.

Bankruptcy is a common alternative to foreclosure. Although bankruptcy does show as a large negative on a credit report, it is better than foreclosure. Because this is such a drastic step, homeowners need to speak to a lawyer before they make the final decision.

Many homeowners also choose to sell the property on their own if their home is nearing, or already in, foreclosure. There are many different aspects of selling a home when it is near foreclosure and so it’s important to hire a real estate agent that has experience dealing with these types of sales.

Free Resources

For Homeowners: If you are in a situation where you may not be able to make your house payments, you can explore “fast sale” or “short sale” options.   Talk with your Realtor about what may work best for your neighborhood.  In addition, click here for more  Houston home sale tips.

For Buyers and Investors: If you are looking to purchase homes in foreclosure, you can search Houston Homes for sale.  However, typically “good deals” go very quickly.  If you’re looking for good Houston foreclosures for purchase, you’ll want to sign up for daily email alerts that will let you know when a foreclosure comes on the market that meets your specific criteria.  HoustonProperties.com provides this service for free.

Find Your Perfect Home

Get More Details

Paige Martin

Our Recent Awards

Why We’re Different

  • #1 Keller Williams Realtor in Houston
  • #1 Keller Williams Realtor in Texas
  • #5 Keller Williams Realtor in the U.S.
  • "One of Houston's Top 25 Realtors," Houston
    Business Journal
  • "One of America's Best Realtors," RealTrends.com / WSJ
  • Over $500 Million in Houston residential home sales
  • We know this market, and this property.
  • We're candid.
  • We'll tell you the "bad' and the "ugly" about any property we show you.
  • Most often, we talk our clients into NOT BUYING.
- Gretchen & Brad Richter- Gretchen & Brad Richter
“We relocated to Texas from out of state 3 years ago, and Paige’s intimate knowledge of Houston neighborhoods, valuations, trends, and pitfalls was simply unmatched. We would never have been able to find our perfect home without her. She was calm and focused when everything seemed most challenging — a true professional and advocate who has become a dear friend. We are grateful to have met her!

Read More

- Peter McGillivray & Jillian Jopling- Peter McGillivray & Jillian Jopling
“Paige demonstrated all qualities you want in a realtor – knowledgeable, attentive, responsive, patient. She put us into our first dream home, and due to that experience, we’ve returned to her time and again for our other real estate needs. You will quickly realize after working with Paige that while she focuses on completing your deal, her endgame is to ensure her clients’ needs are preserved and satisfied.

Read More

- Gail & Ian Mackey- Gail & Ian Mackey
“As first time buyers in the US, we are delighted to have worked with Paige. She is a delight to work with, and I would recommend anyone to enlist her help if you’re looking to either buy or sell a property.

Read More

- Dr. Jen Shroff- Dr. Jen Shroff
“Paige is simply the best. She was patient with us throughout the process and took time to answer all of our questions! She knows so much about the housing market so we felt very confident that we were in great hands!

Read More

- Travis LeConey- Travis LeConey
“Paige has helped my wife and I twice now. I couldn’t think of a better person to have in your corner when buying or selling! She guided us through the process, and made it seem so easy that selling/buying was fun! Paige is a great person, very responsive, and great at what she does. I recommend Paige to all my friends and co-workers. If you are buying or selling in the area Paige covers, give her a call. You won’t regret it!

Read More

- Xavier Refunjol- Xavier Refunjol
“Paige is dedicated, thorough and caring to where you feel you’re their only client. Their best asset is their honesty, based on experience and data. We had a great time buying our first home largely because of them. We would not hesitate to recommend them to anyone.

Read More

- Taylor Lamb- Taylor Lamb
“Paige was wonderful to work with. She was thorough, knowledgeable and patient. I would highly recommend Paige to anyone looking to buy or sell a home.”

Read More

- Jeremy & Lynn Greene- Jeremy & Lynn Greene
“Paige Martin is the best Realtor. She is highly experienced and very knowledgeable. She made our buying experience an enjoyable one, not only for us, but for our daughter, son-in-law and several of our friends. We have bought and sold many houses, and Paige has been the best realtor we have ever worked with. We highly recommend her.

Read More

- Dr. Forrest Roth, MD- Dr. Forrest Roth, MD
“Paige is the best of the best when it comes to real estate! She has bought & sold many properties for us & we couldn't recommend her more highly!

Read More

- Tina Spiller, Chevron- Tina Spiller, Chevron
“I really enjoyed working with Paige on the sale of my townhome. The HAR listing was perfect and went up quickly and the sale was closed within 30 days. I definitely recommend Paige for any real estate transaction.

Read More

Read 100+ Testimonials: LinkedIn for the Best Houston Realtor

What We Can Do For You

CANDID ADVICE

Our promise is to always give you the most candid advice on any property, to help you make the best decision for your family.

EXPERTISE

Having sold over $500M of Houston homes, we've seen the good, bad & ugly and can help you avoid problems.

GREAT DATA

We built a proprietary data analytics package to help give you the best information on any neighborhood, building or home.

NETWORK OF EXPERTS

Built over fifteen years, our network of experts can help you through each step of the process plus help making living in your new home more enjoyable.

Latest Houston Real Estate Stories

Read more Houston real estate updates

Back to Top