My question involves a foreclosure in the State of: Texas

My girlfriend has a house that is currently going through judicial proceedings. Her first court appearance is scheduled for next Wednesday (April 22, 2009).

She had an equity loan that was used to help her brother-in-law in business. He stopped paying on the note last year, and the house went in to a foreclosure status. She spoke with the lender and was informed that if she paid either the back payments + fees and/or paid off the note the foreclosure would stop.

She decided to completely refinance the original equity loan. She is now scheduled to close on Tuesday (April 21, 2009). Of course there is the 3 Day Right of Recission that will not allow the loan to be funded (or in this case pay-off the original loan) until Saturday (April 25, 2009).

If she closes on the loan one-day prior to the court day, will this help in forestalling the foreclosure in court? Will this be a strong defense against forelcosing on the house? If she shows cause with documentation demonstrating her attempting to pay the loan, will the court normally allow for the remaining Days of Recission to proceed in paying off the note?

What would be the best advice for her to utilize? The closing of the loan was pushed back due to the volume of refinancing and purchases being processed with the finance company she is working with in resolving the foreclosure. She wanted to close last month, but due to the finance company being overwhelmed with business hasn't been able to close loan until now.

I have attempted to research this online, but haven't found any information on what would happen if someone refinanced a past-due loan ONE day prior to the court date. If she closes on Tuesday, can she notify finance company's attorney to dismiss the court date and in-turn notify the court?

Thank you,

Distressed in Texas!