I had an interesting conversation with an Austin attorney yesterday.
He said that many of his clients are, shall we say, less than sophisticated. He has had several that have come to him AFTER they were foreclosed on, trying to save their house. Surprisingly, more often than not, he says it’s possible.
There are a lot of these lower end homes already on their books he said, and the lenders aren’t anxious to have any more. If the property hasn’t sold at auction, he can usually work something out with the lender so the borrower can keep their home.
There are no guarantees however. One borrower was able to obtain 100% financing from another lender to pay off the old note, but the current lender refused. The attorney told his client not to sweat it. Chances are, the lender will list the property at less than they owed, and they could buy it back later.
