Know how Texas foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Texas. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: ForeclosureS.com provides the contact information for the Attorney General’s Office in Texas and links to specific legislation regarding foreclosure in Texas. In addition to a summary of Texas law, American Foreclosure Specialists provides a description of possible strategies for avoiding a foreclosure on your home.

Get assistance with finding Texas foreclosure recovery information

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: The Department of Housing and Urban Development provides contact information for approved housing counselors in Texas that are available for free or very low cost. The Home Loan Learning Center offers extensive resources, including an online quiz for assessing your risk of losing your home.

Retain one of the many foreclosure attorneys in Texas

You may need one of the available Texas foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Texas foreclosure law, he or she may be able to make a referral.

I recommend: Jones, Allen & Fuquay in Dallas primarily engages in banking, business transactions and real estate law. The Hopping Law Firm has a department devoted to bankruptcy law with specific experience in home foreclosures.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like "guarantee" and "97% success rate", upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission.  The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.