Texas Attorney General Addresses Foreclosure

Texas Attorney General urges homeowners at risk of foreclosure to contact lenders and foreclosure counselors. Consumers who call early may have more alternatives to foreclosure.

In addition to talking directly with their lenders, Attorney General Abbott urged homeowners to talk with counselors at community nonprofit groups that are approved by the U.S. Department of Housing and Urban Development (HUD). Homeowners may call the HUD referral line at (800) 569-4287 for information on counseling centers in their communities.

“With mortgage industry leaders and public officials continuing to address the growing housing crisis, it is critically important for homeowners to take some measures to prevent their problems from escalating,” Attorney General Abbott said. “At the first sign of trouble, homeowners should contact their lenders, visit a HUD-approved counseling agency or call the HOPE hotline to explore alternatives to foreclosure. The sooner homeowners seek help, the more options that will be available to them.”

Attorney General Abbott urged homeowners to contact their lenders or loan servicers as soon as financial troubles emerge – preferably early in foreclosure timeline. By communicating with their lenders early in the process, homeowners can discuss various options to avoid foreclosure, including fee waivers; temporary deferred payments; delayed interest rate resets; refinancing; or conversion of an adjustable-rate mortgage (ARM) into a fixed-interest loan.

HUD-approved counseling agencies offer foreclosure prevention assistance. Nonprofit counselors can help families review their expenditures and establish a long-term plan for financial stability. Some HUD-approved groups may also negotiate directly with lenders on a consumer’s behalf to have fees waived or mortgage loan terms modified, depending on the consumer’s qualifications. For a list of HUD-approved counseling agencies in Texas, consumers can access the Office of the Attorney General’s home page at www.oag.state.tx.us.

Texas Foreclosure Prevention Task Force

The Texas Foreclosure Prevention Task Force was formed by industry and community stakeholders concerned about the mounting foreclosure crisis in Texas.

Texas Foreclosure Prevention Task Force is comprised of representatives from over 50 organizations representing state, local, and federal government organizations, the financial industry and the non-profit sector working together toward a common goal – avert home mortgage foreclosures and the impact of foreclosure on Texas families and communities.

The Task Force is Focusing on the Following Activities:

• Raising awareness about the nationally endorsed bilingual Homeowner’s HOPE Hotline 1-888-995-HOPE, available toll free 24/7 to all Texas homeowners struggling with their mortgage payments.
• Establishing communication with callers loan servicer;
• Creating a budget and an “action plan” to address their foreclosure;
• Connecting with local services such as foreclosure intervention counseling and financial education.

Note: The Hotline is not designed to provide callers with grant or rescue funds, specific loan modification products or general information about how or where to qualify for a rate freeze.

• Supporting the outreach efforts of local foreclosure prevention initiatives, such as the coordinated efforts already occurring in many Texas markets including Dallas, Houston, San Antonio, El Paso, and Austin, while supporting the creation of new initiatives in areas with high mortgage default rates;
• Monitoring mortgage default patterns and trends in Texas through ongoing research to support timely intervention;
• Fundraising to increase the capacity of local counseling organizations that assist distressed homeowners with homeownership retention options;
• Identifying and sharing information about available mortgage assistance programs, including rescue and refinance products;
• Analyzing potential legislative recommendations that will support homeownership retention and strengthen Texas communities; and;
• Developing a tracking system to measure the effectiveness of these and other task force activities.

For further information about The Texas Foreclosure Prevention Task Force visit the following Web site at www.texasforeclosurehelp.org.

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