Originally posted by @Dion DePaoli:
Texas is a non-judicial foreclosure state. The Borrower will be issued a time to cure the default and the amounts owed to cure said default. Stalling FC outside of following the delivered remedies from the Mortgagee will end up mostly in vain.
A Borrower can contact their Mortgagee or Servicer and ask for relief. A loss mitigation process might add some time to the process. This will depend on whether or not the Borrower has already done this either through their own actions (asking for relief) or through the actions of the Mortgagee or Servicer (contacting the Borrow with alternatives to foreclosure).
A FC attorney would have to bring forth concepts to stall or stop the foreclosure. While not impossible or relatively uncommon it is not all that common due to the nature of the security instrument and the ordinary course of business most Mortgagee and Servicers conduct in the state. Essentially some of the core ideas would be to show the Borrower did not get served properly or was not afforded the 20 days to cure the default. Further, they could look into standing for the Mortgagee, whether they are legally able to enforce the remedy. This has been diminished as of late by some higher court rulings regarding note possession. The last common idea would be illustrating that some form of dual tracking is present, where the Borrower sought relief was engaged by the Mortgagee or Servicer and the FC continued in process. Again, not overly uncommon, but not all that common either.
Texas and Georgia are not the same. Process and time and expenses are not the same. Apples and oranges there. Texas is one of the quickest FC states in the US. As such, expenses are not all that high.
Reinstatement is eligible through the 20 day period from notice. If that time has elapsed, the Mortgagee can demand payment in full for the entire amounts due. If the time is within that notice, then the interest arrears and advances can be paid to reinstate the loan. The quick time makes it difficult for an investor to step in and cure such things.
I am curious from the OP. These deals that you are trying to get done, I would presume most have no equity and by the mention you make of Sub2, you plan to put a new Borrower into the property, likely with lesser credit and paying a higher interest rate, if not purchasing the property for more than it is worth....
Who do these deals benefit?
They idea is to assign the contract over to other investors that are more interested in what is left on the term of the mortgage and the monthly cash flow as oppose to the equity. What they would do is pay to reinstate the loan and put a renter in there.
