"Facing Foreclosure" has been prepared as apublic service by the Texas Young LawyersAssociation and is distributed by the State Barof Texas. This pamphlet is intended to provideyou with a brief overview of Texas law as itpertains to foreclosure and is not intended toreplace legal advice from an attorney. If youhave specific legal questions, you should seekcounsel from an attorney in your area.

Revised and Updatedby

Texas Young Lawyers Association

The information in this brochure is for educationaland informational purposes only. Please consult anattorney regarding specific legal questions.

Copyright 2010TEXAS YOUNG LAWYERS ASSOCIATIONCurriculum materials created by the Texas Young LawyersAssociation. All rights reserved. No part of these materials maybe reproduced in any form or for any other purpose withoutthe written consent of the Texas Young Lawyers Association.

FAC ING

FORECLOSURE

Table Of Contents

Introduction ..........................................................1Definitions: ...........................................................1What are the different types of foreclosures? ............3

1) Non-judicial Foreclosure ............................32) Judicial Foreclosure ..................................43) Combination Foreclosure ...........................5

What documents do I need to locate if I amfacing a non-judicial foreclosure?..........................5

1) Warranty Deed .........................................62) Promissory Note .......................................73) Deed of Trust ...........................................8

What laws must a lender follow whenperforming a non-judicial foreclosure? ..................8

What steps are involved in anon-judicial foreclosure? ......................................9

1) Notice of Default and Intent to Accelerate(First Notice) ..........................................10

2) Notice of Sale and Acceleration of Debt(Second Notice) ......................................10

3) Foreclosure Sale .....................................114) Distribution of Proceeds ..........................135) Eviction .................................................136) Deficiency Action ....................................137) No Right of Redemption for Non-Judicial

Foreclosure ............................................14What options are available to avoida non-judicial foreclosure? .................................15

1) Loan Modification/Alternative Payment Plan ...152) Deed in Lieu of Foreclosure......................183) Bankruptcy ............................................18

Conclusion ...........................................................19Resources ............................................................20

INTRODUCTION

Purchasing a home may be one of themost significant investments a person orfamily will make in their lives. Lookingfor a suitable home and making an offer topurchase the home can be an exciting andnerve racking experience. Fortunately, areal estate agent, mortgage broker, andescrow agent are often present to guideyou through the process and ensure thatall of the proper paperwork is prepared andexecuted. However, after the sale is com-pleted, there is often not anyone available toconsult with when you experience financialtroubles and face foreclosure. In many situ-ations, the homeowner cannot afford to hirean attorney and does not have enoughknowledge about the law to feel comfort-able communicating with the lender alone.

This pamphlet is designed to provide abasic introduction and description of theforeclosure process, the laws governing fore-closure, and possible options and sources offurther guidance for those facing foreclosure.This pamphlet is focused on foreclosures ofresidential properties by mortgagees and/ormortgage servicers, which are collectivelyreferred to as "lenders" in this pamphlet.

Definitions:

Below are several key terms that youmay encounter in the foreclosure process.Several of these are discussed in greaterdetail later in this pamphlet.

Collateral – Property pledged to the lenderin the deed of trust as security for therepayment of the loan.

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Deed of Trust – Mortgage instrument thatcreates a lien on the collateral and allowsthe trustee to sell it to satisfy the loan debtin the event of a default.

Default – The failure of the borrower tomake the loan payments as agreed in thepromissory note or workout plan, asdeclared by the loan servicer.

Delinquency – A loan payment that is notpaid on the due date, but within the periodallowed before actual default is declared.

Lender – The entity that gave you themortgage loan. It may not be the sameentity to whom you send your payments.

Mortgagee – Lender or holder of the securityinterest in the property; the lienholder; themortgage servicer under certain conditions.

Mortgagor – Debtor, borrower and grantorof the security interest in the collateral;owner of the property.

Mortgage Servicer – The entity to whom yousend your monthly payments. The lender orinvestor has contracted with the servicer tohandle your loan after closing. The serviceris your contact for any issues you have withyour mortgage loan. The original mortgageeor lender may be the mortgage servicer, ifit still receives payments from the debtor.

Nonjudicial Foreclosure – Foreclosure processthat involves no judicial intervention andis free of court involvement.

Security Instrument – The Deed of trustcreating the lender’s lien on the collateral

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and giving the trustee the power of sale.In other states, the security instrument isalso known as the mortgage.

Substitute Trustee – Person appointed bythe current mortgagee or mortgage ser-vicer to exercise the power of sale in lieuof the original trustee designated in thedeed of trust.

Trustee – Person or persons authorized toexercise the power of sale under the termsof the deed of trust.

What are the different typesof foreclosures?

In Texas, the type of foreclosure processthat is used by a lender depends on thetype of debt that is owed. There are twogeneral classes of foreclosure: (1) a non-judicial foreclosure; and (2) a judicial fore-closure. There is also a third type of fore-closure that combines parts of the non-judicial and judicial foreclosures and isused only for specific types of loans.

1) Non-judicial Foreclosure

A non-judicial foreclosure is used whenthe loan was used to purchase the home orto refinance the original purchase loan. Ina non-judicial foreclosure, the foreclosureis performed without involving a court orjudge. The non-judicial foreclosure is oftenperformed by attorneys hired by thelender. As discussed in more detail below,the non-judicial foreclosure occurs at thecourthouse on the first Tuesday of themonth after at least two notices have beensent to the homeowner. Non-judicial fore-

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closures are the most common type andwill most likely be the type of foreclosurethat a homeowner will encounter.

2) Judicial Foreclosure

A judicial foreclosure generally occurswhen a government entity is seeking tocollect taxes owed on the property. Thegovernment will file a lawsuit with thecourt seeking to have your property soldto pay for property taxes that are owed. Ifthe government proves that the taxes areowed and the judge signs an order forforeclosure, the property will be sold bythe sheriff or constable at the courthouseon the first Tuesday of the month. It ispossible that a private lender may choosethis method instead of a non-judicial fore-closure, but it is unlikely because it usual-ly takes longer than a non-judicial foreclo-sure and the lender has less control.

If you are served with a lawsuit seekingforeclosure of your property for failure topay taxes, it is recommended that you con-tact an attorney in your area to assist youin filing a proper response. If you cannotafford an attorney and cannot locate a legalaid center to assist you, you should contactthe government office that has filed the law-suit because they may be willing to workout a payment plan or enter into someform of payment agreement. Obtaininglegal advice in these situations is stronglyencouraged because there are special rulesfor senior citizens and the disabled thatmay stop the foreclosure. Also, it should beknown that a homeowner has a limitedright of redemption for two (2) years fol-lowing the foreclosure sale, but a premium

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will have to be paid in addition to theamount owed for taxes and maintenance.

3) Combination Foreclosure

If a homeowner has received a homeequity loan or a loan that was used to payproperty taxes, the lender must obtain acourt order approving the foreclosurebefore performing a non-judicial foreclo-sure. After the lender provides the FirstNotice (see description below) and thehomeowner does not pay the debt owed,the lender must file an application withthe court requesting an order of foreclo-sure. Unlike a typical lawsuit, the applica-tion does not have to be served on thehomeowner by a sheriff or constable, butinstead can be delivered by certified mail.The homeowner has 38 days to file aresponse to the foreclosure application. Ifa response is filed, the court will hold ahearing to determine whether the lender isentitled to foreclosure. If a foreclosureorder is signed by the court, the lenderwill then be allowed to continue with anon-judicial foreclosure by providing theSecond Notice (Notice of Sale) as dis-cussed below.

What documents do I need to locate if Iam facing a non-judicial foreclosure?

Anyone who has purchased a home orrefinanced a home loan knows that therewere numerous loan documents signed atthe closing. These documents are usuallyprepared by the lender and presented toyou by the title company at closing. Thehomeowner generally does not review thedocuments in advance or at the closing,

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but rather signs everywhere the title agentindicates a signature is needed. When theclosing is complete, the title company pro-vides the homeowner with a set of copiesthat are often placed in a drawer or cabi-net. If everything goes well, it may not benecessary to look at these documentsagain, but they become very important ifyou are unable to make a mortgage pay-ment and the lender begins the foreclosureprocess. It is important that the homeown-er know where their loan documents arekept and become familiar with the prima-ry documents discussed below when fore-closure begins to become a reality.

In Texas, there are three primary docu-ments that serve as the heart of a homepurchase: (1) the Warranty Deed; (2) thePromissory Note; and (3) the Deed ofTrust. This of course assumes that the pur-chaser made a down payment and hasborrowed the remainder of the purchaseprice from a bank or mortgage lender.

1) Warranty Deed

The Warranty Deed is the documentthat transfers ownership of the propertyfrom the seller to the buyer. At the closing,the purchaser will provide a certainamount of money as the down paymentand to pay the closing costs. Down pay-ments can vary from 5% of the total pur-chase price to as much as 20%. The largerthe amount of the down payment, thesmaller the amount that will have to beborrowed from the bank. In addition tothe down payment from the purchaser, thelender will arrange for the remaining salesprice to be paid to the seller. Because the

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seller is receiving the total sales price forthe home at the closing, the seller will signthe Warranty Deed transferring legal own-ership of the property to the buyer. Theindividual seller no longer has any rightsor claims to the property. The WarrantyDeed will be recorded in the propertyrecords of the county where the home islocated giving notice to the world that thebuyer is now the legal owner of the home.

2) Promissory Note

The Promissory Note is the documentthat authorizes the loan from the lenderfor the purchase of the property. ThePromissory Note includes information onthe lender who made the loan; the pay-ment terms of the loan such as the pay-ment amount, number of payments; andinterest rate, and the terms that the lendermust follow if the homeowner fails to makethe required loan payments, or otherwisedefaults under the Promissory Note.

The Promissory Note is importantbecause it will describe when a missedpayment actually becomes a default, thenotices, if any, that the lender must pro-vide to you before a missed paymentbecomes default, and whether the lendermust provide you an opportunity to curethe default before beginning foreclosure.The exact terms will depend on the lan-guage of the Promissory Note making itimportant for you to review this informa-tion to ensure that the lender has compliedwith the terms of the Promissory Notebefore initiating a non-judicial foreclosure.

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3) Deed of Trust

The Deed of Trust is the document thatactually gives the lender the right to per-form a non-judicial foreclosure on yourhome if you default in making paymentsunder the Promissory Note. This provi-sion is referred to as the power of saleclause. The Deed of Trust is not an actualdeed as described above because it doesnot give the lender legal title to your homelike the Warranty Deed. Instead, the Deedof Trust gives the lender certain rights inyour home in exchange for the lender giv-ing you the loan to complete the purchase.One of those rights is the right to forecloseon your home if you default in makingyour monthly mortgage payments underthe Promissory Note.

As you can see, it is important to befamiliar with the payment and defaultprovisions of the Promissory Note becausethe lender cannot foreclose under theDeed of Trust until you have defaultedunder the Promissory Note. A lender per-forming a non-judicial foreclosure isbound to follow the provisions in the Deedof Trust regarding foreclosure as well asthe statutory laws governing foreclosurethat are found in the Texas Property Code.

What laws must a lender follow whenperforming a non-judicial foreclosure?

In addition to the provisions in theDeed of Trust that will set the rules forforeclosure of your property, there arestatutes that set certain minimum require-ments that apply to all non-judicial fore-closures of residential properties in Texas.

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These laws are contained in Chapter 51 ofthe Texas Property Code. Because compli-ance with these statutes has been estab-lished as the minimum requirements for alender, most deeds of trust do not imposeany additional requirements on lendersabove and beyond the minimums found inChapter 51 of the Texas Property Code.

However, it is possible that your Deedof Trust may contain terms that require thelender to provide additional notices beforeperforming the foreclosure sale, that pro-vide you with a right to pay the missedmortgage payments to stop the foreclosuresale, or that provide you with the right toredeem your property after the foreclosuresale occurs. Again, it is very importantthat you review and become familiar withyour rights under the Deed of Trust toensure that the lender has not violated anyof those rights in performing the foreclo-sure. The discussion that follows regard-ing the foreclosure process will assumethat your Deed of Trust only requires thelender to follow the requirements ofChapter 51, which is probably the mostcommon scenario for most residentialproperties.

What steps are involved in a non-judicialforeclosure?

Once a homeowner has missed a mort-gage payment and is in default under thePromissory Note, the lender may attemptseveral unofficial steps to resolve the prob-lem such as collection calls, letters, accep-tance of partial payments, or negotiating atemporary payment plan. Assuming thatthese efforts have not resolved the problem

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and the lender is ready to proceed with anon-judicial foreclosure, the followingactions must be performed by the lender:

1) Notice of Default and Intent toAccelerate (First Notice)

Your lender or its attorney must sendyou a letter by certified mail notifying youthat you have at least twenty (20) days tocure the default, or in other words, tomake any payments that were missed plusany late charges that may have beenassessed. There is no requirement that thehomeowner actually receive the letter sosimply ignoring certified mail letters orrefusing to sign from them will not protectyou. Instead, you should read all lettersand mailings from your lender carefully toensure that you do not miss a deadline oropportunity to fix the problem. If the backdue payments are not brought currentwithin the 20 days, the lender has the rightto demand that the entire loan amount bepaid immediately.

2) Notice of Sale and Acceleration ofDebt (Second Notice)

After the 20-day period has expired, thelender must send a second letter by certi-fied mail notifying you that the entire loanbalance is now due, and the failure to paywill result in the sale of your home. Again,there is no requirement that you actuallyreceive or read the notice as long as it wassent by certified mail to the last knownaddress on file with the lender. This rein-forces the importance of notifying yourlender if your mailing address changesafter you purchase your home. This Notice

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of Sale will provide the details surround-ing the foreclosure sale including the date,time, and location of the sale, as well asthe name and address of the Trustee, whowill perform the sale. The notice must beprovided at least twenty-one (21) daysbefore the sale occurs. The Notice of Salemust also be posted at the county court-house in the designated location and filedwith the County Clerk’s office.

It is possible that after receiving the FirstNotice or the Second Notice you are con-tacted by your lender offering to negotiatea resolution, delay the foreclosure, or otherpossible solution. These individuals maynot be working with or communicatingwith the attorneys who are performing theforeclosure. If you communicate with any-one other than the Trustee or attorney whosent the First Notice or Second Notice, youshould contact the Trustee or attorney whosent the foreclosure notices to make surethat they are aware of the offer made bythe lender and ask them to confirm inwriting that the foreclosure sale will bepostponed. Unless you have written con-firmation from the Trustee or attorney thatthe sale will be delayed, you shouldassume that it will occur at the time anddate in the Second Notice. It is a good ideato get all offers, promises, or other repre-sentations from the lender or Trustee inwriting so that you have a complete andaccurate history of the communications.

3) Foreclosure Sale

In Texas, foreclosure sales must occuron the first Tuesday of the month at thedesignated area of the county courthouse.

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If the first Tuesday of the month is a holi-day, the sale will proceed as usual and willnot be delayed until the next business day.The designated area for foreclosure sales isusually the front steps of the courthouse,but may be located elsewhere in the court-house. The County Clerk’s office will beable to direct you to the proper location.The sale must occur between 10:00 a.m.and 4:00 p.m. The Notice of Sale will statethe earliest time at which the sale willbegin, and the actual sale must take placeno later than three (3) hours from the timestated in the Notice of Sale. For example, ifthe Notice of Sale states that the foreclo-sure sale will begin at 11:00 a.m., the actu-al sale cannot occur after 2:00 p.m. If theTrustee does not perform the foreclosuresale on the proper date, at the proper time,and at the proper location, he or she muststart the whole process over at the begin-ning by reissuing the required notices.

The Trustee named in the Deed of Trustand Notice of Sale will announce the prop-erty being sold by reading the Notice ofSale out loud. At this time, the Trustee willannounce the rules for the auction andwill accept bids for the property.Generally, property sold at foreclosure saleis sold to the highest bidder for cash. Thelender will be able to bid an amount up tothe debt owed without actually producingany cash at the sale. If the bids exceed thedebt owed, then the lender will have toproduce enough cash to account for thedifference between the sales price and thedebt. Once the sale is complete, theTrustee will record a Foreclosure Deed orTrustee’s Deed in the real propertyrecords. This deed will have a similar

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effect as the Warranty Deed describedabove in that it will transfer legal title tothe property from the current homeownerto the high bidder at the foreclosure sale.

4) Distribution of Proceeds

Once the sale concludes, the Trusteedivides the proceeds. First, expenses relat-ing to the sale are paid. These includeadvertising the sale, sending and filing therequired notices, and trustee’s and attor-neys’ fees other than those provided in thePromissory Note. Next, the unpaid princi-pal, interest, late fees, attorneys’ fees, andother unpaid charges as provided in thePromissory Note are paid followed byany junior or inferior lienholders. Anyremaining funds will be paid to you asthe homeowner.

5) Eviction

The new owner of the property, who isusually the lender, must provide the previ-ous homeowner with three (3) days tovacate the property. If the homeownerrefuses to leave the property, the newowner can file an eviction lawsuit in thejustice of the peace court. The JP will usu-ally schedule a hearing within 7-14 days.If the JP determines that the homeowner isimproperly occupying the property, thejudge will enter an eviction order provid-ing five (5) days to vacate the property atwhich time the sheriff or constable willremove the homeowner from the property.

6) Deficiency Action

After completion of a non-judicial fore-closure, the lender has two (2) years from

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the foreclosure sale to file a deficiencylawsuit if the high bid at the foreclosuresale is not enough to pay the lender thedebt owed to and the expenses associatedwith the foreclosure. A deficiency lawsuitis not permitted for lenders who forecloseon a home equity loan. For example, if thehomeowner owes the lender $100,000 andthe lender purchases the property at theforeclosure sale for $75,000, then thelender could file a lawsuit seeking a judg-ment for the $25,000 deficiency.

However, as the homeowner, you canchallenge the lender ’s lawsuit if youbelieve that the value of the property isgreater than the amount bid at the foreclo-sure sale. Using the example above, if youbelieve that the fair market value of theproperty is $95,000, you may submit evi-dence of the value to the court. If the courtfinds that the fair market value is $95,000,then the lender will only be able to collectthe difference between the debt owed andthe fair market value, in this case $5,000.This law is in place to prevent lenders frommaking low bids at the foreclosure saleand then going after the borrower for largedeficiencies. If you are served with a law-suit seeking a deficiency judgment after aforeclosure, you should contact an attorneyto determine if the lender is seeking anamount greater than what it is entitled andto assist you in presenting evidence of thehome’s fair market value to reduce theamount that the lender can collect.

7) No Right of Redemption for Non-Judicial Foreclosure

In Texas, there is no right of redemptionfor homeowners after a non-judicial fore-

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closure. A right of redemption is wherethe homeowner can buy back their homefor a certain time period after the foreclo-sure sale occurs. Rights of redemption doexist in other states and in Texas whendealing with a foreclosure by the govern-ment for the nonpayment of propertytaxes. However, there is no right ofredemption in a non-judicial foreclosure ofa residence.

What options are available to avoid anon-judicial foreclosure?

1) Loan Modification/AlternativePayment Plan

A foreclosure can be cancelled, delayed,or avoided at any time prior to the sale atthe courthouse. Obviously, the best time toreach a resolution is during the 20-dayperiod after receipt of the First Notice.During this time, you are only required topay the past due amounts and not theentire loan amount. If you believe that youwill be able to gather the necessary fundsto bring the loan current, it would be wiseto contact the lender and keep theminformed on your progress as they may bewilling to extend the 20-day period if theybelieve that the matter can be resolvedwithout further action. If you cannot paythe entire amount that is due, your lendermay be willing to agree to a payment plan,loan modification, or other arrangement tobring the loan current and ensure that youwill be able to make future payments.

In certain situations, it is possible thatyour lender must consider modification ifyour home loan qualifies under new laws

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passed to provide relief from rising foreclo-sures. In February 2009, the Federal govern-ment introduced a comprehensive FinancialStability Plan to address certain financialproblems affecting the nation. Included inthe plan is the Making Home Affordableplan, which was designed to stabilize thehousing market and help struggling home-owners get relief and avoid foreclosure. TheHome Affordable Modification Program(“HAMP”) provides eligible homeownersthe opportunity to modify their mortgagesto make them more affordable. To apply fora modification under HAMP, you must:

• Be the owner-occupant of a one- tofour-unit home.

• Have an unpaid principal balancethat is equal to or less than:o 1 Unit: $729,750o 2 Units: $934,200o 3 Units: $1,129,250o 4 Units: $1,403,400

• Have a first lien mortgage (deed oftrust) that was originated on orbefore January 1, 2009

• Have a monthly mortgage pay-ment (including taxes, insurance,and home owners associationdues) greater than 31% of yourmonthly gross (pre-tax) income

• Have a mortgage payment that isnot affordable due to a financialhardship that can be documented

Only your lender or mortgage servicercan confirm whether you qualify for amodification so it is important to contactthem immediately upon receipt of a FirstNotice or other notice indicating that youmay be in default under your Promissory

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Note. In fact, you may contact your lenderprior to actually missing a payment if youare struggling financially to make yourmonthly mortgage payments.

Lenders who participate in the HomeAffordable Modification Program may notproceed with a foreclosure sale on an eligi-ble loan until the homeowner has beenevaluated for the program and, if eligible,a trial modification offer has been made.Participating lenders must use reasonableefforts to contact homeowners facing fore-closure to determine their eligibility,including in-person contacts at the ser-vicer’s discretion. Foreclosure sales maynot be conducted while the loan is beingconsidered for a modification or duringthe trial period. Additionally, once ahomeowner has entered into a trial periodplan by submitting the first trial periodpayment, the servicer may not take thefirst legal action to initiate a new foreclo-sure. A list of loan servicers who are par-ticipating in the Program may be found athttp://www.makinghomeaffordable.gov/contact_servicer.html.

The Home Affordable RefinanceProgram gives homeowners with loansowned or guaranteed by Fannie Mae orFreddie Mac an opportunity to refinanceinto more affordable monthly payments.The Home Affordable ForeclosureAlternatives Program provides opportuni-ties for homeowners who can no longerafford to stay in their home but want toavoid foreclosure to transition to moreaffordable housing through a short sale ordeed-in-lieu of foreclosure.

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All of these programs are discussedin more detail on the website,www.MakingHomeAffordable.gov. Thesite is designed to provide detailed infor-mation and resources about these pro-grams, to allow homeowners to connectwith free HUD-approved counseling orga-nizations, to find the application docu-ments necessary for the Making HomeAffordable Program, and to find answersto frequently asked questions.

2) Deed in Lieu of Foreclosure

A deed in lieu of foreclosure involves ascenario where the homeowner voluntari-ly transfers ownership of the property tothe lender. Deeds in lieu of foreclosurehave certain advantages over non-judicialforeclosures such as they are quicker tocomplete, cost less money for the lender,and are more confidential than a publicsale. However, this is usually only anoption where ownership of the property isfree and clear of mortgages, liens, andencumbrances. A lender will not want toaccept a deed in lieu of foreclosure whenthe property is burdened with debts toother parties or when there will be apotential for a large deficiency judgment.Ultimately, exercising this option is at thediscretion of the lender and the homeown-er will be left with the same final result aswith a foreclosure – the loss of their resi-dence.

3) Bankruptcy

The filing of a bankruptcy petition willimmediately stop a foreclosure sale fromoccurring as of the filing of the petition.

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However, you will be required to continuemaking some type of regular paymentsand make some payments toward the delin-quency as part of your bankruptcy plan.Filing for bankruptcy is a major event andshould not be taken lightly or performedwithout careful consideration. If youbelieve that this may be the option to stop aforeclosure, you should consult an attorneywith experience in bankruptcy or consumerlaw to determine if you will be able to suc-cessfully complete a bankruptcy plan.

CONCLUSION

Dealing with the potential loss ofyour home is a stressful and traumaticexperience. While there are certain situa-tions where foreclosure cannot be avoid-ed, there are several actions that can betaken before trouble arises to avoid theforeclosure of your home. The TexasForeclosure Prevention Task Force offersthe following tips to avoid foreclosure:

• Don’t ignore the problem.• Contact your servicer sooner

rather than later if you think theremay be a problem.

• Don’t ignore communications fromyour servicer. Return their callsand open mail from them.

• Understand foreclosure preventionoptions.

• Contact a HUD-approved non-prof-it housing counselor for assistance.

• Review your budget and makechanges as necessary. If you don’thave a budget, create one and stickto it!

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• Be aware of foreclosure scams anddon’t become a victim.

• Know your mortgage rights.

It is our hope that this pamphlet willprovide assistance in accomplishing atleast a few of the tips listed here. There aremany resources available for homeownersfacing foreclosure including those listed inthis pamphlet although this pamphletshould not be considered a complete list ofresources for assistance with foreclosures.To take advantage of the availableresources and to place themselves in thebest position to avoid foreclosure, allhomeowners should educate themselveson the terms of their loan documents andbasic foreclosure law, actively work withtheir lenders to resolve the problem earlyin the process, and seek out assistancefrom qualified groups. While it will notalways result in success, ignoring theproblem and refusing to communicatewith the lender will certainly result in theforeclosure occurring.

RESOURCES

Foreclosure Information and Resources

Making Home Affordable:www.MakingHomeAffordable.gov

Hope Now:www.hopenow.com or 1-888-995-HOPE(4673). HOPE NOW is an alliance betweencounselors, mortgage companies,investors, and other mortgage market par-ticipants. This alliance will maximize out-reach efforts to homeowners in distress tohelp them stay in their homes and will

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create a unified, coordinated plan to reachand help as many homeowners as possi-ble. The members of this alliance recog-nize that by working together, they will bemore effective than by working indepen-dently. The Department of the Treasuryand the U.S. Department of Housing andUrban Development encouraged leadersin the lending industry, investors, andnon-profits to form this alliance.

Housing and Urban Development:1. http://portal.hud.gov/portal/page/portal

/HUD/topics/avoiding_foreclosure2. http://www.hud.gov/local/tx/home

ownership/foreclosure.cfm (Texas)3. http://portal.hud.gov/portal/page/

portal/HUD/states/ texas (Texas)

Texas Department of Housing andCommunity Affairs:http://www.tdhca.state.tx.us/homeownership/foreclosure/index.htm

Texas Rio Grande Legal Aid:http://www.trla.org/sections/teams/index.php?page=hou_forc

Texas Foreclosure Prevention Task Force:http://texasforeclosurehelp.org/

Legal Assistance

Lawyer Referral Information Service:If you do not qualify for legal aid, you cancontact the Lawyer Referral informationService online here: Lawyer ReferralInformation Service or by phone at 1-800-252-9690. Through the Lawyer ReferralInformation Service, a person may have athirty-minute consultation with an attor-

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ney for $20. At the end of the consultation,the attorney and individual may discusspossible representation and price struc-ture. Please understand that the LawyerReferral Information Service is not a probono or reduced-fee program. Hours ofoperation: Monday through Friday 8 a.m.to 5 p.m. The call-in service is closed onlegal holidays.

Legal Services and Other Advocacyin Texas:For an on-line listing of legal serviceproviders, see the Referral Directoryfor Low-Income Texans athttp://www.texasbar.com/Content/NavigationMenu/Pro_Bono/Introduction.htm.

Texas Access to Justice Commission:Call 1-800-204-2222, ext. 1855, visithttp://www.texasatj.org/legalassistance,or write to P.O. Box 12487, Austin, Texas78711.

Texas Law Help:Texas Law Help is an online resource forfree and low-cost civil legal assistance forthose who cannot afford legal help. Learnabout your rights, self-help resources, andlegal aid. Information located at:www.TexasLawHelp.org.

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NOTES