Foreclosure is a process that can take a lender a considerable amount of time to complete. In Texas, lenders are required to provide 30 days notice of their intent to accelerate your loan. If you are unable to bring the loan current within that 30 day period, the lender "accelerates" the note (calling the full balance due). The lender then must give the homeowner 21 days advance notice of the foreclosure sale date, which always occur on the first Tuesday of each month. At that point, the homeowner must either pay the entire balance owed OR come to some other resolution with the lender prior to the foreclosure sale date. Otherwise, the property will be sold. So what should the homeowner do next?
As soon the homeowner starts receiving the acceleration or foreclosure notices, he or she should consult with an attorney, especially a bankruptcy attorney or an attorney experienced in real estate. If the lender has already set a foreclosure sale date, the homeowner should seek advice regarding a chapter 13 bankruptcy, which may allow the homeowner time to catch up or cure the missed mortgage payments and reinstate the mortgage loan, thereby helping them keep their house. Regardless of the chapter of bankruptcy that is filed, the bankruptcy filing will nonetheless "stay" (i.e. halt, at least temporarily) the scheduled foreclosure sale, providing time for the homeowner to find alternative living arrangements.