Avoiding Foreclosure in San Marcos & Hays County
Facing foreclosure is stressful, but understanding the process and your options can help you act quickly. San Marcos homeowners have several ways to stop or avoid foreclosure, from working with the lender to selling the property before the auction.
Understanding the Texas Foreclosure Process
Texas primarily uses non‑judicial foreclosure. Lenders must wait until your loan is at least 120 days delinquent before beginning the process:contentReference[oaicite:27]{index=27}.
After receiving a Notice of Default, you have a 20‑day right to reinstate the loan by paying past‑due amounts:contentReference[oaicite:28]{index=28}.
If you don’t reinstate, the servicer must give you at least 21 days’ Notice of Sale before the auction:contentReference[oaicite:29]{index=29}. Sales are typically held on the first Tuesday of the month at the courthouse.
These timelines mean the foreclosure process can move quickly—often 60 to 90 days from default to sale—so acting early is critical.
Options to Avoid Foreclosure
- Contact your lender. Explain your situation and ask about repayment plans or loan modifications.
- Consider forbearance or refinance programs that temporarily lower or suspend payments.
- Seek housing counseling from nonprofit organizations. They can help negotiate with your lender.
- Explore a traditional sale if you have enough equity. However, the listing process may take months and require repairs.
- Negotiate a short sale if your home is worth less than the mortgage balance. Lenders sometimes accept less than what’s owed.
- Offer a deed in lieu of foreclosure, voluntarily transferring the property to the lender in exchange for debt forgiveness.
- Sell to a cash buyer. Investors can close quickly and purchase properties as‑is, which may stop the foreclosure before the auction.
How a Cash Sale Helps
Cash buyers can close in seven to ten days:contentReference[oaicite:30]{index=30}, providing funds to pay off the lender and avoid the auction.
Because investors buy as‑is, you won’t need to make repairs or stage the property. This can be a relief if you’re already struggling with payments.
Be sure to verify proof of funds and work with a reputable title company to ensure the loan payoff is handled correctly.
Costs and Considerations
While a cash offer may be lower than market value, consider the expenses you’ll avoid—ongoing mortgage payments, property taxes, insurance and potential legal fees.
Texas sellers typically pay around 3.5 % of the sale price in closing costs:contentReference[oaicite:31]{index=31}. Factor this into your calculations when comparing offers.
If foreclosure is looming, don’t wait. WeBuyCTX works with San Marcos homeowners to provide fast solutions. Learn more on our Hays County and foreclosure pages, or contact us today.
General info only; not advice.