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Facing the threat of foreclosure can be overwhelming, but Texas homeowners have access to meaningful support. While major statewide foreclosure assistance grants are no longer active, the key is shifting focus from a single grant application to a proactive strategy. This involves free expert counseling, understanding your legal rights, and working directly with your mortgage lender.
This resource provides a clear path to the help that is currently available. It connects you with HUD-approved counselors, non-profit organizations, and the specific loss mitigation options that can help you secure your home.
It is critical for homeowners to understand the current landscape of assistance programs in Texas. The large-scale, federally funded grant programs created in response to the pandemic have concluded, which requires a new strategy for those seeking help today.
Major Grant Programs Have Closed
The most significant program, the Texas Homeowner Assistance Fund (TXHAF), is officially closed and no longer accepts applications. This was a temporary relief measure under the American Rescue Plan Act of 2021, administered by the Texas Department of Housing and Community Affairs (TDHCA). It was designed to mitigate financial hardships caused by the COVID-19 pandemic.
The TXHAF program provided up to $65,000 per household for past-due mortgages, property taxes, insurance, and HOA fees. It successfully distributed over $742 million to 58,536 homeowners across 239 Texas counties. Another pandemic-era program, the Texas Emergency Mortgage Assistance Program (TEMAP), has also closed.
Where to Find Help Now
While large-scale grants have passed, homeowners are not left without options. The support system has shifted from direct financial aid to process-oriented assistance that empowers homeowners to find sustainable solutions.
The most effective forms of foreclosure assistance in Texas today include:
The path to saving a home now relies on proactive engagement with these resources.
When facing foreclosure, the most impactful action you can take is to contact a HUD-approved housing counseling agency. This service is free, confidential, and fundamentally changes the dynamic between you and your lender. You gain a knowledgeable professional who acts as your advocate and guide.
What a Counselor Does for You
A HUD-approved foreclosure prevention counselor is a strategic partner dedicated to helping you achieve the best possible outcome. These trained professionals understand the mortgage industry and can level the playing field with your lender.
A HUD-certified counselor will:
Always use these legitimate, non-profit counselors. Avoid for-profit "foreclosure rescue" companies that charge high fees for services that are available for free.
How to Find a Free Counselor in Texas
Locating a certified housing counselor in your area is straightforward.
These services are available across Texas through local organizations like the Dallas County Home Loan Counseling Center and Housing Channel in Fort Worth.
The foreclosure process in Texas is governed by strict rules and timelines that protect the homeowner. Understanding these rules is essential, as the timeline provides built-in opportunities for you to take action.
The 120-Day Pre-Foreclosure Window
Under federal law, a servicer generally cannot start foreclosure until your loan is more than 120 days delinquent. This period is a critical window of opportunity to act.
During this time, your servicer must attempt to contact you by phone within 36 days of a missed payment. They must also send you a written notice about your options within 45 days. This period provides ample time to contact a counselor and submit a loss mitigation application, which can halt the foreclosure process while under review.
Understanding Legal Notices
If the issue isn't resolved, the servicer begins the formal process with legal notices. These are not eviction notices; they are procedural steps that signal new opportunities to intervene.
Your Right to Stop the Sale (Reinstatement)
Texas law gives homeowners the right to reinstate the loan. This means you can stop the foreclosure at any point before the public sale by paying the full amount of missed payments, plus any legitimate fees and costs. This right to cure the default allows you to resume regular monthly payments and effectively end the foreclosure action.
The most direct path to avoiding foreclosure is working with your mortgage servicer on a loss mitigation option. Lenders are often motivated to find a solution because foreclosures are expensive and time-consuming. The right option depends on whether your financial hardship is temporary or permanent.
For Long-Term Financial Changes: Loan Modification
A loan modification is a permanent change to your mortgage terms designed to make your monthly payment affordable long-term. This is the best option for homeowners who have experienced a permanent reduction in income.
A modification can be achieved by:
To obtain a modification, you must submit a complete loss mitigation application documenting your financial hardship.
For Short-Term Financial Setbacks: Forbearance & Repayment Plans
If your financial hardship is temporary and you expect to resume regular payments soon, a forbearance or repayment plan may be the right solution.
When Keeping Your Home Isn't an Option
In some situations, keeping the home is not financially feasible. Even then, there are alternatives that can reduce the damage to your credit.
Beyond counselors and lenders, a broader support system exists for Texas homeowners. State agencies, non-profits, and legal aid societies provide a safety net of resources.
State and Local Non-Profit Help
While the TDHCA no longer administers large grant programs, it remains a vital hub for housing information, partnering with non-profits across all 254 Texas counties. The Texas State Affordable Housing Corporation (TSAHC) also connects homeowners with local foreclosure prevention counselors.
On a local level, various organizations may offer emergency financial assistance. This aid is typically limited and dependent on available funding. Organizations to contact in your area include:
Calling 2-1-1 Texas is an excellent way to connect with these and other social service providers in your community.
Accessing Free Legal Aid
If you believe your mortgage servicer has violated your rights or you are facing a complex legal issue, you may need an attorney. For low-income homeowners, free assistance is available from legal aid societies.
Organizations like Lone Star Legal Aid and Texas Rio Grande Legal Aid have dedicated Foreclosure Prevention Projects. Their attorneys can help with issues such as:
Specialized Support for Veterans
Veterans and active-duty service members with VA-backed loans have access to specialized assistance. You should contact the U.S. Department of Veterans Affairs (VA) directly if you anticipate trouble with payments. The VA has its own team of loan technicians who can work with you and your servicer to explore options like repayment plans, special forbearance, and loan modifications.
No. As of 2025, the Texas Homeowner Assistance Fund (TxHAF) is closed and is no longer accepting new applications. All program funds have been allocated, so new foreclosure assistance grants in Texas are not available through this specific state program.
Your immediate first step is to contact a free, HUD-approved housing counselor in Texas. They can assess your financial situation, explain your legal rights, and help you communicate with your mortgage lender about potential alternatives, such as a loan modification or forbearance.
You can find a list of legitimate, HUD-approved agencies on the U.S. Department of Housing and Urban Development (HUD) website or by calling the Homeowner's HOPE Hotline. These nonprofit services are free and are the safest source of foreclosure prevention advice.
With the federal TxHAF program closed, there are currently no other large-scale, statewide grant programs for general mortgage relief. Assistance is now primarily available through lender-specific programs or very localized nonprofit and municipal funds, which a HUD counselor can help you identify.
A loan modification is a permanent change to your original mortgage terms. Your lender might agree to lower your interest rate, extend the loan term, or add the past-due amount to the principal. This can result in a more affordable monthly payment and stop foreclosure.
Some county tax assessor-collector offices offer relief plans, such as installment agreements or deferrals, for seniors, disabled individuals, or disabled veterans. You must contact your local county tax office directly to see if you qualify for any available property tax relief options.
Texas veterans with VA loans have access to special assistance. The VA offers repayment plans, special forbearance, and other options to help veterans avoid foreclosure. Veterans should immediately contact the VA's loan program or a VA-specialized housing counselor for guidance.
Be wary of any company that demands a large fee upfront, "guarantees" they can stop your foreclosure, or tells you to stop paying your lender. Legitimate help from a HUD-approved agency is always free. Never sign over your property deed to a "rescue" company.
In Texas, the lender must send you a "Notice of Default" and give you at least 20 days to cure the default (pay what is owed). After that, they must post a "Notice of Sale" at least 21 days before the actual foreclosure sale date.
Yes, filing for Chapter 13 bankruptcy triggers an "automatic stay," which immediately halts a foreclosure sale. This legal action provides time to reorganize your debts and create a court-approved repayment plan to catch up on your missed mortgage payments over several years.
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