Texas Foreclosure Law
• Quick Facts
- Timeline: Typically 60 days
- Right of Redemption: No
In Texas, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. The power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.
Power of Sale Foreclosure Guidelines If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
• Prior to proceeding with a foreclosure, Texas laws state that the lender must mail the borrower a letter of demand, informing the buyer he has twenty (20) days to pay the delinquent payments or foreclosure proceedings will begin.
• At some point after the borrowers’ twenty (20) days have expired, but at least twenty one (21) days before the foreclosure sale, a foreclosure notice must be: 1) filed with the county clerk; 2) mailed to the borrower at their last known address; and 3) posted on the county courthouse door.
• The foreclosure sale must take place on the first Tuesday of any month, even if said Tuesday falls on a legal holiday, but only after the proper preliminary notices have been given. The sale is on the courthouse steps by auction to the highest bidder for cash. Anyone may bid, including the lender, who bids by canceling out the balance due on the note, or some part of it.
IMPORTANT!!! Lenders may obtain deficiency judgments, but they are limited to the difference between the fair market value of the property at the time of sale and the balance of the loan in default.
• Are you behind on the mortgage?
• Do you have multiple mortgages on your property?
• Have you tried to obtain funds to bring your loan current?
• Are you worried about having a foreclosure on your credit report
for the next 7-10 years?
• Have you tried dealing with the Mortgage Co. without success?
• Do you need help FAST?
We Can Help!
If you are facing foreclosure the best advice we can give you is ACT NOW!
Most people facing foreclosure simply do nothing and hope for a miracle.
Don't fall into that trap!
Some homeowners seek advice from an attorney (and why not – they ARE SUPPOSED to have all the answers, right?) Maybe, but maybe not!
Some homeowners act on their lawyer's advice and file bankruptcy thinking that all their problems are now solved. Bankruptcy does put a hold on everything, but it DOES buy you a little time. The end result is almost always the property still goes to auction and you now have a bankruptcy in addition to the foreclosure on your credit report.
I'm sure you have been contacted by other investors, especially if the foreclosure has gone public. Unlike other investors, we will not try to take advantage of your unfortunate situation. We simply figure out a mutually beneficial solution so you can move on with your life!
Time is your enemy! If your house payments are more than a month or two behind, your lender has probably already started foreclosure proceedings. As time passes thousands of dollars in penalties and legal fees can be added to the balance you owe. And every single day extra interest is added! The longer you wait, the harder it is for us to help you. To avoid this you must act quickly!
Don’t feel like you are alone either…per www.reozone.com foreclosures are up by 43%! That is the highest they have ever been!
Why trust your home to anyone who claims to be a “foreclosure consultant” when you can choose a professional company that specializes in this field since 1999!