Facing Pre-Foreclosure in San Antonio? Here’s What You Need to Know

If you’re a homeowner in San Antonio struggling with mortgage payments and have received a notice of default, you’re officially in pre-foreclosure—the first step in the foreclosure process. While this can be overwhelming, the good news is that you still have options to protect your home, minimize financial damage, and move forward.

What is Pre-Foreclosure?

Pre-foreclosure begins when you’ve fallen two to three months behind on your mortgage payments, and your lender issues a default notice. This is a formal warning that if payments aren’t made, the lender will proceed with foreclosure, meaning they will take legal action to repossess and sell your home.

At this stage, your house has not yet been taken away, and you still have time to prevent foreclosure by exploring available solutions.

What Are Your Options in Pre-Foreclosure?

1. Catch Up on Payments (Loan Reinstatement)

If you can make up the missed payments—including late fees and penalties—you can reinstate your loan and stop the foreclosure process. Some lenders allow repayment plans, which let you spread out overdue amounts over several months.

2. Request a Loan Modification

A loan modification can help lower your monthly payment by:

• Extending your loan term to reduce monthly payments
• Reducing your interest rate
• Adding missed payments to the loan balance rather than requiring a lump sum

Lenders often prefer loan modifications over foreclosure because it allows them to recover their money without taking ownership of the property.

3. Sell Your Home Before Foreclosure

If keeping the home isn’t an option, selling before foreclosure allows you to avoid damage to your credit and potentially walk away with equity.

• Traditional Sale: If your home has equity, selling with a San Antonio real estate agent can help you pay off your loan and possibly pocket extra cash.
• Short Sale: If your home is worth less than the remaining mortgage, your lender may approve a short sale, allowing you to sell for less than you owe. This avoids foreclosure, but it does require lender approval.

4. Consider a Deed in Lieu of Foreclosure

A deed in lieu of foreclosure allows you to voluntarily sign your home over to the lender in exchange for cancellation of your debt. This helps you avoid foreclosure but may impact your credit score.

5. Explore Foreclosure Assistance Programs

San Antonio homeowners may qualify for financial assistance through local or state programs, such as:

• Texas Homeowner Assistance Fund (TXHAF) – Offers aid for delinquent mortgage payments, taxes, and utilities.
• HUD Housing Counselors – Provide free guidance on foreclosure prevention.
• Forbearance Programs – Some lenders allow temporary pauses or reductions in mortgage payments due to financial hardship.

What Happens If You Do Nothing?

If you take no action during pre-foreclosure, your lender will proceed with a foreclosure auction or repossess your home through a legal process. This can have severe consequences:

• Eviction from your home
• Loss of any equity you may have built
• Significant damage to your credit score (foreclosures stay on your credit report for 7 years)
• Difficulty buying another home for several years

Act Now – Take Control of Your Home’s Future

The pre-foreclosure stage is your opportunity to take action. Whether you want to stay in your home or sell to avoid foreclosure, making an informed decision now can help you protect your financial future.

Need Help? Let’s Talk!

If you’re in pre-foreclosure in San Antonio, reach out today to explore your options. There’s no obligation—just expert advice to help you move forward.

📞 Contact Kristen Smith, Realtor at 210-784-6527 for a free consultation. Let’s work together to find the best solution for your situation!

Kristen Smith, Realtor best San Antonio Realtor