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Facing difficulties with mortgage payments is a profoundly stressful experience for any Texas homeowner. The uncertainty and fear can be overwhelming, but it is crucial to understand that options are available. The single most important factor in successfully navigating this challenge is taking immediate, informed action.
While major state-run relief funds from the pandemic era have closed, a durable framework of support and established processes remains. The path forward involves proactive communication with mortgage servicers, expert guidance from certified housing counselors, and a clear understanding of the foreclosure prevention tools at a homeowner's disposal.
It is vital for homeowners to have the most current information to avoid wasting precious time pursuing resources that are no longer available. Several large-scale programs established in response to the COVID-19 pandemic have now concluded their operations.
Texas Homeowner Assistance Fund (TXHAF): Program Closed
The Texas Homeowner Assistance Fund (TXHAF), administered by the Texas Department of Housing and Community Affairs (TDHCA), is closed. As of April 15, 2025, the program is no longer accepting new applications or providing assistance to homeowners.
This program was established with federal funding from the American Rescue Plan Act of 2021 to help homeowners who experienced financial hardship due to the COVID-19 pandemic. It provided grants of up to $65,000 per household to cover delinquent mortgage payments, property taxes, insurance premiums, and Homeowner Association (HOA) fees.
Before its closure, the TXHAF program had a significant impact, distributing approximately $742 million in assistance to 58,536 Texas homeowners across 239 counties. For homeowners with questions specifically regarding a previously submitted and now closed application, inquiries can be directed to txhaf@tdhca.texas.gov.
Texas Emergency Mortgage Assistance Program (TEMAP): Program Closed
Similarly, the Texas Emergency Mortgage Assistance Program (TEMAP) is also closed. This program officially ended on January 4, 2023.
TEMAP was funded through federal CDBG CARES funds and was designed to provide short-term mortgage payment assistance for up to six months to eligible homeowners impacted by the pandemic. The assistance was administered through a network of local cities, counties, and nonprofit service providers rather than directly by the state.
What This Means for Homeowners Seeking Help Now
The closure of these large-scale grant programs marks a significant shift in the landscape of mortgage relief. It has created an information vacuum where much of the guidance found online is now dangerously out of date. Homeowners can no longer look to a state-run fund to apply for a grant to catch up on payments.
However, this is not a dead end. It signifies a return to the established, permanent channels for mortgage assistance that existed long before the pandemic. The focus for obtaining relief has pivoted away from applying for government aid and back toward direct, proactive engagement with mortgage servicers through a process known as loss mitigation, ideally with the free guidance of a professional housing counselor. This is the new, correct path forward for any homeowner facing financial hardship today.
Given Texas's uniquely rapid foreclosure timeline, immediate action is not just recommended; it is essential. The following steps constitute an emergency action plan for any homeowner who anticipates missing a payment or has already fallen behind.
Step 1: Do Not Ignore the Problem—Contact Your Mortgage Servicer Immediately
The first and most critical step is to communicate with the mortgage servicer—the company to which the monthly mortgage payment is sent. It is a common misconception that servicers are eager to foreclose. In reality, foreclosure is a costly and undesirable outcome for lenders. They are often highly motivated to find a workable solution.
When calling the servicer, ask to speak directly with the Loss Mitigation Department or Home Retention Department. Be prepared to be honest and clear about your financial situation. It is vital to document every single interaction: for each phone call, record the date, time, representative's name, and a summary of the conversation. Confirm any agreements in writing.
Step 2: Contact a HUD-Approved Housing Counselor—Your Most Valuable Ally
The second immediate step is to contact a housing counseling agency approved by the U.S. Department of Housing and Urban Development (HUD). For services related to foreclosure prevention and delinquency counseling, these services are always free of charge.
A HUD-approved housing counselor is a certified, impartial expert whose job is to advocate for you. They serve several crucial functions:
This service provides a critical buffer for homeowners who may feel intimidated when dealing directly with a large financial institution. The counselor acts as a translator, strategist, and advocate, ensuring you are treated fairly.
Step 3: Organize Your Financial Documents for the "Workout" Process
To engage with the servicer's loss mitigation department and a housing counselor, you will need to provide a complete picture of your financial situation. Gathering these documents in advance will significantly speed up the process. This collection of documents is often referred to as a "workout package" or "loss mitigation application."
The typical required documents include:
"Loss mitigation" refers to the range of options a mortgage servicer can offer a borrower to avoid foreclosure. The goal is to find a solution that allows the homeowner to either get back on track with payments or exit the home without the severe credit damage of a foreclosure.
Home Retention Options: Staying in Your Home
These are the preferred solutions for both the homeowner and the servicer, as they result in the homeowner keeping their property.
Home Disposition Options: When Staying is Not Possible
If your financial situation has changed so significantly that you can no longer afford the home, there are alternatives to foreclosure that are less damaging to your credit score.
Understanding the legal foreclosure process in Texas is critical because it is one of the fastest in the nation. The majority of foreclosures in Texas are non-judicial, meaning they do not require a court order and can proceed very quickly.
Phase 1: The Pre-Foreclosure Period (First 120 Days)
Under federal law, a mortgage servicer generally cannot make the first official filing for foreclosure until the loan is more than 120 days delinquent. This 120-day period is a critical window of opportunity to contact your servicer and submit a loss mitigation application.
Phase 2: Notice of Default and Intent to Accelerate (The 20-Day "Right to Cure" Letter)
Once the 120-day period passes, the servicer can begin the formal Texas foreclosure process. The first step is to mail a Notice of Default and Intent to Accelerate via certified mail. This legal notice gives the homeowner at least 20 days to "cure" the default by paying the full past-due amount.
Phase 3: Notice of Sale (The 21-Day Countdown)
After the 20-day cure period expires, the servicer sends a Notice of Sale by certified mail at least 21 days before the scheduled foreclosure sale date. This 21-day clock is the final countdown. The notice must also be:
This process means a property can be legally sold at auction in as little as 41 days from the first formal notice.
Phase 4: The Foreclosure Sale
Foreclosure sales in Texas are public auctions held on the first Tuesday of every month at the county courthouse, between 10 a.m. and 4 p.m. The property is sold to the highest bidder.
Crucially, for most mortgage foreclosures in Texas, there is no statutory right of redemption after the sale. This means that once the property is sold at auction, the former homeowner cannot reclaim it. The sale is final.
While large-scale emergency funds have ended, key state agencies still provide valuable resources. It is important to understand their function to direct your efforts effectively.
Texas Department of Housing and Community Affairs (TDHCA) Resources
The TDHCA is the state's lead agency for affordable housing. Although its direct mortgage relief funds are closed, it remains a vital information hub. The agency's "Help for Texans" web page is a searchable portal that can connect residents with local organizations providing various forms of assistance, such as help with utility bills or home repairs.
TDHCA's foreclosure prevention resources also correctly direct homeowners to the most effective sources of help: HUD-approved housing counselors and the national Homeowner's HOPE™ Hotline.
Texas State Affordable Housing Corporation (TSAHC) Programs
The Texas State Affordable Housing Corporation (TSAHC) is another key player, but its role is often misunderstood. TSAHC's flagship programs, "Homes for Texas Heroes" and "Home Sweet Texas Home," are designed to help eligible Texans buy a home, not provide foreclosure relief to existing homeowners.
These programs provide down payment assistance and favorable mortgage loans to qualified homebuyers, including teachers, veterans, and low-to-moderate-income families. While not a source for mortgage relief, TSAHC's website does provide valuable educational materials and directs struggling homeowners to the proper resources, such as HUD-approved counselors.
Navigating a mortgage crisis alone is daunting. Fortunately, Texas has a robust network of nonprofit and legal organizations dedicated to providing expert guidance, often at no cost.
How to Find a HUD-Approved Housing Counseling Agency in Texas
Connecting with a free, certified housing counselor is the most effective step a homeowner can take. There are several easy ways to find a local agency:
These agencies exist in every major metropolitan area, including Austin , Dallas , Houston , and San Antonio , as well as in smaller communities.
Texas Legal Aid Resources for Foreclosure
In situations involving a foreclosure lawsuit or complex legal issues, advice from an attorney may be necessary. For low-income Texans, several organizations may provide free or low-cost legal assistance:
Key Texas Mortgage and Foreclosure Prevention Resources
| Resource Name | Phone Number | Website | Best For |
|---|---|---|---|
| HUD Housing Counselor Hotline | (800) 569-4287 | (https://www.hud.gov/counseling) | Free, expert foreclosure prevention counseling and negotiation help. (The first call after the servicer). |
| Homeowner's HOPE™ Hotline | (888) 995-HOPE (4673) | 995hope.org | Another excellent source for free, confidential foreclosure prevention counseling. |
| State Bar of Texas Legal Hotline | (800) 504-7030 | texasbar.com/disaster | Connecting low-income Texans with legal aid providers for complex issues or after a disaster. |
| Texas Attorney General | (800) 621-0508 | texasattorneygeneral.gov | Reporting suspected mortgage relief or foreclosure rescue scams. |
| VA Home Loan Assistance | (877) 827-3702 | va.gov/housing-assistance | Specific assistance for veterans and service members with VA-backed loans. Export to Sheets |
Direct communication with a mortgage servicer is a negotiation. Being prepared can significantly improve the outcome.
Preparing for the Conversation
Before calling the servicer, have your financial documents organized and your hardship letter written. Be prepared to clearly and concisely explain the nature of the hardship and what type of payment is realistically affordable going forward. Honesty and a cooperative attitude can go a long way.
Leveraging Your Financial Standing and Other Offers
A history of on-time payments prior to the hardship demonstrates a commitment to meeting your obligation. If refinancing is a potential option, getting Loan Estimates from multiple lenders can be a powerful negotiation tool. A competing offer can sometimes persuade your current servicer to offer a more favorable modification.
Negotiating Fees and Loan Terms
While principal and interest are based on the original agreement, many fees associated with a mortgage can be negotiated, particularly during a modification. Always ask for a detailed justification for each fee. Fees like lender-charged origination, processing, or underwriting fees may be reduced or waived.
However, some costs are non-negotiable because they are set by third parties or government entities, such as:
Financial distress attracts predatory scam artists who seek to profit from a homeowner's fear. These "foreclosure rescue" companies often make bold promises they cannot keep. It is vital to recognize the warning signs.
Red Flags of a Mortgage Relief Scam
Be extremely wary of any person or company that does the following:
How and Where to Report Suspected Fraud in Texas
If you encounter a company that displays these red flags, immediately cease contact and report them to the proper authorities.
The primary goal of Texas mortgage relief programs, such as the Texas Homeowner Assistance Fund, is to provide financial aid to eligible homeowners. This assistance helps residents catch up on overdue mortgage payments, property taxes, and other housing-related costs to prevent mortgage delinquency and foreclosure.
While the initial Homeowner Assistance Fund was tied to COVID-19 hardships, current and future Texas mortgage relief programs may have different eligibility criteria. It is crucial to check the specific requirements of any active program, as some focus on broader financial difficulties beyond the pandemic.
Yes, comprehensive mortgage assistance in Texas often extends beyond the principal and interest of your loan. Eligible homeowners can frequently receive funds to pay for past-due property taxes, homeowners' insurance premiums, and even homeowner association (HOA) fees to fully prevent foreclosure.
Typically, funds provided through the Texas Homeowner Assistance Fund are structured as a non-recourse grant, not a loan. This means that for most eligible homeowners who meet the program's terms, the financial assistance for mortgage relief does not need to be repaid.
To apply for foreclosure prevention aid, you must go through the official program administrator, which is typically the Texas Department of Housing and Community Affairs (TDHCA). The application process for any available Texas mortgage relief is managed online through their official portal when applications are being accepted.
Applicants generally need to provide proof of identity, income statements (like pay stubs or tax returns), a copy of their mortgage statement, and documentation proving their financial hardship. Having these documents ready can significantly speed up your Texas mortgage assistance application process.
Yes, being unemployed or having a significant reduction in income is a common qualifying hardship for Texas mortgage relief. You will need to provide documentation of your unemployment benefits or other evidence of your financial situation to demonstrate your need for mortgage payment assistance.
The processing time can vary based on application volume and the complexity of your case. After submitting a complete application, it can take several weeks or even a few months to receive approval and for the funds to be paid directly to your mortgage servicer or other required parties.
If your application for mortgage assistance is denied, you should receive a reason for the decision. You may have the right to appeal. It is also wise to immediately contact a HUD-approved housing counselor in Texas to explore other foreclosure prevention alternatives and programs available.
Yes, eligibility for Texas mortgage relief is typically tied to income limits. Homeowners must have an income at or below 100% of the Area Median Income (AMI) or 100% of the median income for the United States, whichever is greater, to qualify for assistance programs.
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