There may be defenses to foreclosure, including violations of the Texas Constitution, common law fraud, violations of the Truth in Lending Act, and the Home Ownership Protection Act. Your original loan documents, as well as any documents that you have received in the foreclosure process are key. While there may be a very limited exceptions, in general, once the foreclosure occurs, and especially if the home is purchased by a buyer at the foreclosure sale, a borrower can usually not set aside a foreclosure once a sale occurs.
Bankruptcy May Stop Foreclosure
Under federal law, bankruptcy may stop the foreclosure from proceeding provided you file the bankruptcy before the sale occurs and give proper notice to the proper parties. When you file bankruptcy, a stay order is usually issued stopping any collection action, including a foreclosure from going forward. Filing bankruptcy may give you an effective way to catch up on a mortgage arrearage. In most cases, after filing bankruptcy, the homeowner will be responsible for the regular mortgage payment plus an additional amount in a plan payment to catch up on the arrearage. If a homeowner cannot do this after filing, the mortgage company may ask the Court to lift the automatic stay to proceed with foreclosure even though the bankruptcy has been filed.