How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 54340
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
17027240
Type Your Real Estate Law Question Here...
Richard is online now
A new question is answered every 9 seconds

IS THERE ANY OTHER METHOD IN TEXAS TO CANCELING A DEED OF

Customer Question

IS THERE ANY OTHER METHOD IN TEXAS TO ***** OF TRUS OR REPOSSESS A HOME OTHER THEN A FORCLOSURE A DEFAULT MORTGAGE PAYMENT?
JA: Since laws vary from place to place, what state is this in? And has any paperwork been filed?
Customer: YES, A TEXAS DEED OF TRUST RECORDED IN THE COUNTY
JA: Has anything been filed or reported?
Customer: YES, A TEXAS DEED OF TRUST RECORDED IN THE COUNTY
JA: Anything else you want the lawyer to know before I connect you?
Customer: NO
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Richard replied 3 months ago.

Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 3 months ago.

Yes, there are alternatives.

You have basically 3 options when considering walking away from the property…foreclosure, deed in lieu of foreclosure or short sale. Texas, unfortunately, is a deficiency state...which means the lender can pursue the borrower for the deficiency...the amount owed over the greater of the fair market value or the amount of the foreclosure sale. Whether or not they will depends upon their assessment of the collectibility of a deficiency judgment. So, if you can convince them there is nothing for them to get, and that if they were to pursue a judgment, you would simply file for bankruptcy protection and get the judgment discharged—and even if you have no intention of doing so, it is still good leverage with the bank because they do not know whether or not you would… then it is unlikely the lender will spend the time and money necessary to get a judgment they believe is uncollectible in the end.

Short sales are dicey. It is generally preferable to do a deed in lieu of foreclosure with the bank (where the bank accepts a deed in exchange for releasing the borrower from the loan) or let the bank foreclose. A deed in lieu of foreclosure saves the bank the time and expense of foreclosure. A short sale only frustrates the buyer and costs the buyer more because the broker is paid a commission which results in less proceeds being available to the bank.....and if the bank is going to release the borrower from the deficiency, it would do so under a deed in lieu of foreclosure without the frustration to the buyer and the payment of the broker commission.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as Good or Excellent (hopefully Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

Related Real Estate Law Questions