Phoenix, AZ -- (SBWire) -- 04/03/2013 --As a first step to preparing homeowners for eventual foreclosure proceedings, the lender must file a “Notice of Default,” which simply states the lender’s awareness of the fact that a person has fallen behind on his mortgage. Then the lender will require the homeowner to bring the past-due amount up to date or they will accelerate the debt. This means that if the property owner does not get current or make an arrangement with the lender, the full amount owed will be demanded, which could put a homeowner in bigger trouble. To stop foreclosure in Texas, an individual should talk to a lender’s representative to request a loan modification. Many banks and credit unions throughout Texas have their own in-house programs for this, so it’s a good place to start. Most lending institutions want to help people out, so there is always a way to save one’s home by working together with the original lien holder.

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If trying to work out a mutually acceptable repayment plan with one’s lender does not yield the desired results, there are governmental plans that help stop foreclosure in Texas, such as the HAMP plan. This plan, the home affordable modification program, or HAMP, works with both lenders and consumers to modify, or change, the terms of a person’s mortgage loan so the payments are easier for him to handle. The eligibility requirements for this aid are clearly outlined on the government’s homepage, as well as how the program encourages lenders to participate in the program. The Federal Housing Administration (FHA) and the Department of Housing and Urban Development also offer modification or refinancing options. Information on these programs can be found on the HUD website.

If worse comes to worst and a homeowner is not able to obtain modification to stop foreclosure in Texas, there is always the option of declaring personal bankruptcy. Most people consider this process anathema because it stays on one’s credit report for up to 10 years, but sometimes a home can be saved by filing for Chapter 13 bankruptcy. This type of bankruptcy allows an individual to work out a payment plan for up to 5 years to catch up on his mortgage, saving his home.

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