Texas Foreclosure Prevention Guide

Your step-by-step action plan to stop foreclosure, protect your credit, and save your equity.

The 121-Day Critical Timeline

⚠️ CRITICAL WARNING: Texas has one of the fastest foreclosure timelines in the nation. You have roughly 4 months from the first missed payment to the auction.

Missed Payment 1

Late fees assessed. Credit score drops.

Missed Payment 2

Lender calls intensify. Pre-foreclosure logic begins.

Notice of Default

Acceleration clause activated. Full balance due.

121

Auction Sale

Home sold at county courthouse. Eviction follows.

Action Plan: Immediate Steps

Call your lender - Ask for the 'Loss Mitigation' department.

Gather financial documents (Pay stubs, bank statements, hardship letter).

Document your hardship in writing (Job loss, medical, divorce, etc).

Apply for Texas Homeowner Assistance Fund (TXHAF).

Contact a HUD-approved counselor (1-800-569-4287).

Your 4 Main Options

1Reinstatement

Pay the total missed amount including fees in one lump sum.

Best if: You had a temporary hardship and now have savings.

2Loan Modification

Negotiate lower monthly payments by extending the term or lowering rate.

Best if: You have steady income but fell behind.

3Forbearance

Temporarily pause payments. You MUST repay the missed amount later.

Best if: You have a short-term emergency (medical, job loss).

4Quick Cash Sale

Sell the home "as-is" for cash helping to protect your credit from foreclosure.

Best if: You have no equity, major repairs, or need immediate cash.

Red Flags: Avoid These Scams

Anyone asking for 'upfront fees' to modify your loan (Illegal in Texas).
Promises to 'eliminate your mortgage'.
Requests to sign your deed over 'temporarily'.
Advice to stop communicating with your lender.

Local Assistance Resources

waco Resources

Heart of Texas Goodwill(254) 776-1455
Waco Habitat for Humanity(254) 752-9656
Community Action Program(254) 752-9729