Homeownership is the single greatest asset most Americans own, and their principal source of wealth.  Foreclosure and risks of foreclosures have been increasing in Texas and throughout the country over the past year. One of the principal causes for such increase is the failure of the sub-prime market.  Another cause is the creative financing vehicles that were established to increase homeownership opportunities, and thereby enhance national wealth. In Harris County, Texas alone there are thousands of foreclosures each month, many of which are home mortgage defaults, and for nonpayment of property taxes.

In November 2009, the Texas Access to Justice Foundation awarded ECI additional funding to enhance OMLPPP to include foreclosure defense services.  It operates to specifically address the large number of homeowners in disadvantaged communities whose homes are at risk of foreclosure.  Helping individuals in underserved communities maintain their property is a high priority for the Foreclosure Defense Clinic.  The Foreclosure Defense Clinic provides both advocacy and educational services.  Through the services of supervising attorneys and student practitioners the project provides services that range from counsel and advice to in-court representation.

The following options may help to prevent home foreclosure:

• Contact your lender to re-negotiate your loan.  Lenders often prefer to avoid foreclosure and they have options to help borrowers through difficult financial times.
• Place your property on the market.  Selling your property may be a viable option to losing it to foreclosure.  You will be able to use the proceeds from the sale to pay off your mortgage.
• Convey the property back to the lender.  You may be able to transfer your house back to the lender through a deed in lieu of foreclosure as a way of relieving your mortgage debt.
• Consider filing for bankruptcy protection.  Filing for bankruptcy may give you enough time to work on the issues.
• Determine if you are eligible for the President’s loan modification program.
  Visit http://makinghomeaffordable.gov/ to determine if you might be eligible for refinancing because the amount owed on your home is more than the current value of the home.  You can also check to see if you are entitled to a loan modification if you have had a change in circumstances after getting your loan (e.g. significant increase in mortgage payment amount, decrease in income, or hardship event such as medical bills, divorce, death of spouse, etc.)