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Foreclosure Defense

Texas foreclosure laws provide lenders with options for both judicial and non-judicial foreclosure proceedings in the event that a mortgage goes into default. In the event of a judicial foreclosure, the mortgage contract must not include a power of sale stipulation or clause.

To receive a judicial foreclosure, Texas foreclosure law requires the lender to sue the borrower in court to obtain a court order authorizing the foreclosure.

In a non-judicial foreclosure, the borrower has signed a power of sale clause, which allows the lender pre-authorization to foreclose in the event of a default. If the power of sale clause stipulates the time, place and terms of the sale, it must be followed exactly. If the clause does not state the terms then Texas foreclosure law outlines the procedure to be followed.

Before the official foreclosure process can begin, the lender is required to mail the borrower a letter of demand. This letter requires the lender to demand payment for all past due amounts from the borrower within 20 days.

Under Texas foreclosure law, if the borrower is unable to correct the default within the 20 days the lender is required to file a notice of sale with the county clerk in the county where the property is located. In addition, a copy must be posted on the courthouse door and an addition copy must be mailed to the borrower at their last known address. This must be done at least 21 days in advance of the sale date for the property.

The sale itself is to be held on the first Tuesday of the month. This applies even if the first Tuesday is a legal holiday. The sale is a public auction that allows anyone to bid, including the lender by canceling all or a portion of the outstanding mortgage balance. In the event that there are no other bidders, the lender will take title of the property.

Lenders under Texas foreclosure law are allowed to sue for a deficiency judgment; however, this amount is limited to the difference between the sale amount, or fair market value and the amount that is due on the mortgage loan.

Whatever your foreclosure situation is time is against you. The sooner you discover your options, the easier it may be to stop your foreclosure. The lawyers at Bailey & Galyen are experienced and successful in foreclosure laws. Contact us today for an evaluation of your case.

Fuddruckers Filed For Bankruptcy? Can I Still Get My Hamburger?

By Jim Ince

On April 22, 2010, the parent company of Fuddruckers declared bankruptcy. The interesting fact here is that very few people are aware that Fuddruckers even filed for bankruptcy.  Many of you might be saying to yourselves that you ate a Fuddruckers burger recently and everything seemed normal.  It is shocking to find out that a well-respected company can file for bankruptcy and largely keep that a secret. Planning to enjoy a day at Six Flags anytime soon?  Well, they too are in bankruptcy.

Probably the largest misconception about bankruptcy is that it completely disrupts or destroys your life.  In reality, unless a company reaches the point where it simply chooses not to continue doing business, it continues to operate with little or no interruption in service.  So, why did Fuddruckers file?  It seems the company has a small handful of stores that have not been operating profitably, and that handful of stores is having a negative impact on the rest of the operation.  The company found that by continually trying to prop up the individually failing stores, it was risking collapse of the whole operation.

Individuals often find themselves in a similar situation.  They are able to continue existing day to day.  However, so much of their financial focus is on the part of their life that is not functioning well, and they are devoting more and more of their disposable income to paying credit card debt.  Much as Fuddruckers discovered, there may be aspects of the financial picture that are working extremely well.  The problem is that a substantial part of their income is tied up with purchases made long ago and ever-increasing late fees and interest.  Unlike with companies, creditors owed money by individuals do not really “negotiate” and make a plan for you to pay back your debts.

If you are struggling, it is time to sit down with an experienced bankruptcy attorney.  There are two major kinds of bankruptcy for consumers.  Chapter 7 is the traditional bankruptcy and deals primarily with credit card and medical debt.  Chapter 13 helps you if you have also gotten behind on your house and/or car, as well as with your credit card debt.  The type of bankruptcy best for a particular individual depends on a variety of factors including the type of debt that person is carrying and their amount of income.

Don’t let the situation deteriorate until there is no choice but to dig into your 401(k) or your home equity.  In Texas, these are protected assets and you need to keep them protected.  A bankruptcy will let you keep your home, cars, 401(k) and, in most cases, cash!  You won’t know until you explore.

Unlike for a Fuddruckers, personal bankruptcy is not just a business decision.  It is also an emotional situation, which a bankruptcy attorney is trained to handle.  You do not have to apologize for the situation you find yourself in.  The appointment is free.  Call now to see one of our attorneys.  Let us put you back on your feet so that you, like Fuddruckers, can manage your finances and be profitable and successful.  People do not think less of Fuddruckers or Six Flags because those companies filed bankruptcy.  I think I know where I may go for lunch today!

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