Timothy E. Lockhart - YOU HAVE OPTIONS: YOUR GUIDE TO AVOIDING FORECLOSURE

garnishment of your wages until your debt is paid off.

DIFFERENT RIGHTS OF REDEMPTI EMPTION

Usually, in a deed of trust state, you’ll have the right to redeem your property by paying off the full balance right up to the time of the auction. After the foreclosure sale, you will have no recourse. In contrast, mortgage states usually allow you to redeem the property within a few months after it is sold by paying off the full amount you owe on your mortgage.

POINTS TO REMEMB O REMEMBER:

• A growing number of states are adopting the deed of trust model to secure the borrower’s debt, including Texas. In most of these states, the title to the property is held by a third-party trustee until you pay off your debt. In other states, the lender holds the title until your debt is paid. • Lenders in title theory states are likely to pursue non- judicial foreclosures because they are quicker and avoid the court process. • All lenders have the option of initiating judicial proceedings — especially if the foreclosure sale of your house does not satisfy your entire debt to the lender. • The type of foreclosure the lender pursues could have ramifications for your finances and whether you have the option to redeem your house after the foreclosure sale.