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Foreclosure Evaluation & Ebook

  • Evaluate Your Situation (Form Below)

    Not many people know how to find the right solutions for their problem. This process will save time and answer many of your questions.

  • Explore All Possible Options

    After the evaluation, you will understand every possible option available for your exact situation. No more searching or worrying about finding a solution.

  • Avoid Further Loss or Judgments

    Regardless of what option you choose, our process takes every possible precaution to help you avoid further losses or deficiency judgments.

  • Recovery From Foreclosure

    Regardless of whether you keep your home, or walk away, we will take steps to help your credit and start the financial recovery.

  • Full Support & Accountability

    We take the problems of our visitors very seriously. We know your financial future is at risk and we pledge our full support to help you through these tough times.

Texas Foreclosure Laws

Expected Timeline: About two months
Security Instrument: Mortgage or Deed of Trust. Deed of trust most common.
Type of Process: Judicial or nonjudicial. Nonjudicial foreclosure used most often.
Protections for Servicemembers: Tex. Civ. Prac. & Rem. Code § 16.022
Time to Respond: Notice of default must be served twenty days before serving notice of sale. Notice of sale must be served at least 21 days before sale. Notice must also be posted on courthouse.
Reinstatement Period: Notice of default must be served twenty days before serving notice of sale. Notice of sale must be served at least 21 days before sale. Notice must also be posted on courthouse.
Protections for High-Cost Mortgages: None.
Redemption Period: None.
Eviction Process: Former owners must be served with three day notice to quit property. New owner may then file eviction lawsuit.
Deficiency Judgments: Allowed if brought in separate lawsuit within two years of sheriff sale. Amount of deficiency may be limited by fair market value of property.
Limits on Deficiency Judgments: Action to pursue a deficiency must be brought into court within two years of auction date. If the borrowers ask the court to determine the fair market value, the deficiency may be limited or offset if the market value is greater than the price obtained at auction.
Cash Exempted in Bankruptcy: $11,000 for single person, $22,000 for married couple.
State Statutes: Tex. Prop. Code Ann. § 51.002

Texas foreclosure law allows lenders to follow either a Non-Judicial or Judicial Foreclosure process. If the loan documents do not contain a power of sale clause, the lender must use the Judicial Foreclosure process. In this process, the lender sues the borrower in court to obtain an order to foreclose.

If the original loan documents contain a power of sale clause, then the lender can use a Non-Judicial Foreclosure process. This clause authorizes the lender to sell the property in the event of the borrower defaulting. If the loan documents specify the place, time, and terms of the sale, then those details will be adhered to.

To begin the foreclosure process in Texas , the lender must send a letter to the borrower demanding payment within twenty (20) days of the amount delinquent. If the borrower can not cure the delinquency within that period, the lender must record a notice of sale with the county clerk. The notice must be recorded at least twenty-one (21) days before the scheduled sale date. Copies of the notice must be posted on the courthouse door and mailed to the last known address of the borrower.

The sale is conducted on the first Tuesday or each month, even if the day is a legal holiday. The place of sale is the courthouse steps in the county in which the property is located and is conducted as a public auction. The lender may take title to the property if there are no higher bids by canceling all or part of the outstanding loan balance.

The borrower in Texas does not have a right to redeem the property after the sale date, and the lender may sue the borrower for a deficiency judgment. The amount of the judgment is limited to the difference between the fair market value or sale amount and the loan balance due.

State Website: www.capitol.state.tx.us