Is it a good idea to buy a vacation home in the current Austin real estate market? Does a slower real estate market mean you can get a better deal on a vacation home in Austin?

These are just a few of the questions you should ask if you’re planning to buy a vacation home in the Austin, Texas area. In reality, there’s no easy way to answer these questions across the board, because every home buying situation is different. But there are certain things that apply to most vacation home-buying situations…

Buying Your Vacation Home in a Slower Market

Let’s begin by talking about the basic motivations that drive people to buying a vacation home in Austin. The goal, of course, is to buy a home in a popular vacation spot. This is important for several reasons: 

1. You want to take your own vacations there.
2. You want to rent the home to other vacationers.
3. You want a solid investment property.

So how does the local real estate scene tie into all of this? Does a slow market hurt or help when trying to buy a vacation home? For one thing, you may be able to obtain a vacation property for far less than you would pay later on, when the real estate market heats up. So for investment purposes, buying a vacation home in a slow Austin market could benefit you in the long run.

And yes, there’s the ”could” clause again … nothing in Austin real estate investing is a guarantee.

The Downside of Vacation Properties

Obviously, buying a vacation home in Austin is a case-by-case process that cannot be labeled good or bad across the board. Sometimes it makes good financial sense, and sometimes it’s best to wait things out and see what the market does.

With that being said, here’s the good news. Austin, Texas is a popular area for many reasons, and it has enjoyed a slow and steady growth in popularity. From all current indications, Austin real estate will be a good investment for years to come. So buying a vacation home here in town could be a worthwhile venture that pays off handsomely.

Related: Austin Homes for Sale

When buying a home in Austin, Texas, should you work with an independent real estate agent, a broker, or a real estate company? It’s a question that only you can answer for yourself, but I’m happy to offer my ideas on the subject.

The most important thing here is to choose a real estate agent you would be comfortable working with. Keep in mind that you may be dealing with this person for a period of several months, so it helps if you see eye to eye from day one!

Another consideration is that an agent who works for an Austin real estate company will generally have more resources as his or her disposal, than an independent agent working alone. For instance, an agent with one of the larger Austin real estate companies may have more marketing tools (for sellers) or better listing information (for buyers).

Lastly, let me plant another seed of consideration. Do you even need to work with an Austin real estate company or an agent? This will depend on your comfort level with the world of real estate. But it’s worth noting that many people these days are buying and selling homes without the use of a real estate agent or company. 

If it’s your first time buying a home, I recommend using an agent. But if you’re more familiar with the process of buying and selling, you could save yourself some money (on the agent’s commission) by handling things for yourself. It’s something to think about.

Real Estate Companies in Austin

The good news is, if you decide to work with an agent or broker, there are plenty of them in Austin, Texas. You can find all of the national franchises in town, such as RE/MAX. And there are also plenty of locally owned real estate companies throughout the Austin area.

Good luck with your real estate experience!  

Pick up a newspaper or watch the news on any given day, and you are likely to hear something about the number of foreclosed homes in Texas (and elsewhere in the United States).

In fact, you often hear the word “crisis” and “meltdown” used to describe the number of Texas home foreclosures in recent months.

There’s no doubt about it. Mortgage foreclosures have certainly reached an all-time record high in this country. But there are ways to stop foreclosure on a Texas home. And that’s where this article comes into the picture. Below, I have listed some of the most common (and most effective) ways to avoid having your home foreclosed upon.

Avoiding Mortgage Foreclosure in Texas

As we progress through the different ways to stop your home from being foreclosed upon, keep one thing in mind. In most cases, mortgage lenders will want to avoid foreclosing on your home nearly as much as you want to avoid it. Lenders are not in the business of managing and selling homes, nor do they care to be in that business. They loan money — that’s it. So they are usually eager to work with you to stop foreclosure on your Texas home.

Step 1. Learn About Texas Foreclosure Laws

If you want to avoid having your house foreclosed upon, you first need to understand the laws covering foreclosures in Texas. Once you understand these procedures and laws, you’ll better understand how the process works — and what options you have for avoiding the process altogether!

You can find plenty of resources online if you do a Google or Yahoo search for the phrase Texas foreclosure laws.

2. Contact Your Lender ASAP

Keeping in mind that your mortgage lender probably wants to avoid foreclosure as much as you do, you should contact them early on to discuss your options. With the record-breaking number of foreclosures in Texas and beyond, many lenders are going out of their way to help homeowners avoid the foreclosure process. So it’s likely that your lender has payment options and plans available that can help you stop foreclosure altogether. Contact them ASAP.

3. Review Your Mortgage “Workout” Options

Here’s a key question to ask yourself, regarding your current financial troubles. Are your financial problems temporary, or are they more permanent? This is one of the things your lender will want to know, in an effort to present you with foreclosure-avoidance options.

If you are only having temporary financial problems, then you have more options to stop foreclosure on your Texas home. For example, talk to your lender about the following ways to stop foreclosure and get back on track:

• Reinstatement: If your financial problems are temporary, and you think you’ll be able to pay off the amount owed at a future date, then reinstatement might be a good way to stop foreclosure on your home. With this option, you and the lender agree on a future date in which you will pay off the amount owed (payments missed) as a lump sum.
• Forbearance: This option is sometimes used in conjunction with the reinstatement option mentioned previously. Here, your mortgage lender lets you reduce or suspend payments for a period of time, after which another option will be used to bring the loan current (such as reinstatement).
• Repayment Plans: This is another option that may help you avoid foreclosure altogether. Here, you and the lender agree on a payment plan that basically takes the money owed from missed payments and spreads it out over future payments. Thus, this is another option for you if your financial problems are only temporary.

The three options listed above are best suited for Texas homeowners with only temporary financial problems. According to FHA.gov, here are some options for stopping foreclosure when your financial problems are more long-term.

• Partial Claim: If you have mortgage insurance (PMI) on your mortgage loan, you may be able to obtain a one-time, interest-free loan from the mortgage guarantor that would help you bring the loan current. Your lender may assist you with this process.
• Modifying the Mortgage: If you can make payments on your loan, but don’t have enough money to bring your account current or you can’t afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways: (A) adding the missed payments to the existing loan balance, (B) changing the interest rate, sometimes even by converrting an adjustable rate mortgage into a fixed rate; and (C) extending the number of years allowed for repayment.

Learn more about partial claims by visiting the HUD resource below:
www.hud.gov/offices/hsg/sfh/nsc/faqpc.cfm

When Keeping the Home is Not an Option
All of the options listed above are ways to stop foreclosure while also keeping your home. But what if you just can’t afford the mortgage any longer? What options do you have then? Here are some ways to sell or transfer the home quickly in order to stop the foreclosure process.

• Assumption - Your lender may also allow a qualified buyer to take of your mortgage loan. The end result of this process is the same as an outright sale in that somebody else takes on the mortgage, thus helping you stop foreclosure from going on your financial record.
• Sale - Most mortgage lenders will agree to a specified period of time during which the homeowner (who can no longer afford to make payments) may try to sell the home. The key here is to find a real estate agent who specializes in pre-foreclosure quick sales, as you only have a limited time to sell the home before the lender moves forward with foreclosure.

Stop Foreclosure - Conclusion and Summary

These are a few of the most common options that homeowners use to avoid foreclosure on their home. But there are other options as well. The key here, again, is to start by learning the foreclosure process and Texas laws that govern them. You don’t have to become a legal expert on the subject, but it’s important to at least familiarize yourself with the process.

Next, you should contact your mortgage lender to see what options are available to help you avoid foreclosure. The sooner you contact your Texas mortgage lender about your problems, the better off you’ll be in the long run.