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Texas Foreclosure Process and Laws

Navigating the Texas foreclosure procedure can feel frustrating when you’re stressed over losing your home. But loan providers have to follow federal and Texas foreclosure laws, and these laws include important foreclosure notice requirements developed to provide you reasonable warning before they take any action or offer your home at a foreclosure sale. If you’ve received a foreclosure notice or are just worried about what occurs if you fall back on your mortgage payments, you ought to find out about your rights and the steps you can take to stop a foreclosure.

This guide breaks down what happens throughout the Texas foreclosure procedure, describes what each notice indicates, and details your alternatives to prevent foreclosure. With this knowledge, you can make clever, confident decisions for your home and your family. You’ll likewise be able to maximize your situation and, ideally, work out a method to save your home or at least make it through the procedure with as little stress and anxiety as possible.

What Are My Rights During Foreclosure in Texas?

When Can a Foreclosure Start in Texas?

What Kinds of Foreclosure Are Available in Texas?

The Length Of Time Does Foreclosure Take in Texas?

Texas Foreclosure Timeline and Steps

How to Stop Foreclosure in Texas

Can I Get My House Back After a Texas Foreclosure?

Are Deficiency Judgments Allowed in Texas?

Texas Foreclosure Process for Home Equity Loans Is Different

Get More Foreclosure Help and Information

What Are My Rights During Foreclosure in Texas?

Under federal law, the servicer generally can’t formally begin a foreclosure up until you’re more than 120 days overdue on payments.

Before the foreclosure crisis, federal and state laws managing mortgage servicers and foreclosure procedures were reasonably minimal and tended to favor foreclosing lending institutions. However, federal and state laws now greatly control loan maintenance and foreclosure procedures. Most of the laws give defenses to borrowers. Servicers typically have to provide customers with loss mitigation opportunities, account for each foreclosure action, and strictly comply with foreclosure laws.

Also, the majority of people who take out a loan to buy a domestic home in Texas sign a promissory note and a deed of trust. These files offer house owners legal rights, such as the right to a preforeclosure notice called a “breach letter.”

In a Texas foreclosure, you likewise can get certain foreclosure notifications throughout the process, get present on the loan to stop the foreclosure sale, get unique protections if you remain in the military, and get any excess money after a foreclosure sale, to name a few things.

When Can a Foreclosure Start in Texas?

Under federal law, the servicer usually can’t formally begin a foreclosure up until you’re more than 120 days past due on payments, based on a couple of . (12 C.F.R. § 1024.41 (2025 ).) This 120-day preforeclosure period offers most homeowners plenty of time to obtain loss mitigation with their loan servicer.

What Types of Foreclosure Are Available in Texas?

If you default on your mortgage payments in Texas, the loan provider might foreclose utilizing a judicial or nonjudicial technique.

How Judicial Foreclosures Work

A judicial foreclosure starts when the loan provider submits a suit asking a court for an order allowing a foreclosure sale. If you do not respond with a composed answer, the lending institution will instantly win the case. But if you select to safeguard the foreclosure lawsuit, the court will examine the evidence and determine the winner. If the loan provider wins, the judge will go into a judgment and purchase your home sold at auction.

How Nonjudicial Foreclosures Work

If the loan provider picks a nonjudicial foreclosure, it should complete the out-of-court treatments explained in the state statutes. After doing so, the loan provider can sell the home at a foreclosure sale.

Most loan providers select the nonjudicial process since it’s quicker and cheaper than litigating the matter in court.

How Long Does Foreclosure Take in Texas?

The nonjudicial foreclosure process, from the Notice of Default and Intent to Accelerate (see below) to the foreclosure auction, can take as little as 41 to around 90 days. However, including the 120-day preforeclosure delinquency duration, the entire process may take around 6 or seven months in total, though it can be much shorter sometimes.

Texas Foreclosure Timeline and Steps

Again, most property foreclosures in Texas are nonjudicial. Here’s how the procedure works.

Notice of Default and Intent to Accelerate in a Texas Foreclosure

Texas law requires the servicer to send you (the customer) a notification of default and intent to speed up by qualified mail that offers at least 20 days to cure the default before a notice of sale can be offered. The 30-day breach letter sent out pursuant to the regards to the deed of trust can please this requirement. (Tex. Prop. Code § 51.002 (d)

( 2025).) The notification is sent to the customer’s last known address and need to consist of the amount due and the date it has to be paid.

Under Texas law, the statute of restrictions for a judicial or nonjudicial foreclosure is 4 years, starting the day after the cause of action accumulates. (Tex. Civ. Prac. & Rem. Code § 16.035 (a), (b),( d)( 2025 ).) Generally, the accrual date is the loan’s maturity date. But if the mortgage loan consists of a velocity stipulation, the statute of constraints starts at the time of acceleration. (Tex. Civ. Prac. & Rem. Code § 16.035 (e )( 2025 ); Holy Cross Church of God in Christ v. Wolf, 44 S.W. 3d 562, 566, Tex. 2001). To speed up a mortgage loan, the lending institution must provide the borrower clear notifications of the intent to speed up and the real acceleration. (See Ogden v. Gibralter Sav. Ass’ n, 640 S.W. 2d 232 (1982 ).) The four-year statute of restrictions starts when these notices are sent out.

Notice of Sale in a Texas Foreclosure

After the remedy duration has ended and at least 21 days before the foreclosure sale, the servicer sends a notice of sale through licensed mail to each customer obligated to pay the financial obligation. The notice of sale will likewise be:

– posted at the courthouse door in the county where the residential or commercial property is situated
– submitted with the county clerk in the county where the residential or commercial property lies, and
– published online. (The county must also publish the date, time, and location of the sale on the very same site page on which the notice is posted.) (Tex. Prop. Code § 51.002 (b ),(

f-1)(2025).)The notice of sale should include the date, time, and area of the sale, as well as a disclosure geared towards military servicemembers that they must inform the sender of the notice about their military status. (Tex. Prop. Code § 51.002 (i) (2025).)The federal Servicemembers Civil Relief Act provides legal defenses to military personnel who might lose their home to foreclosure.

Foreclosure sales are normally held on the first Tuesday of each month between 10:00 a.m. and 4:00 p.m. at the county court house. The sale should begin at the time stated in the notification of sale but no later than three hours after the time scheduled on the notification of sale. (Tex. Prop. Code § 51.002 (a)

( 2025 ).)A couple of potential methods to stop a foreclosure include renewing the loan, exercising a loss mitigation choice, redeeming the residential or commercial property before the sale, or filing for bankruptcy.

At the sale, the lending institution generally makes a credit bid. The lender can bid up to the overall quantity owed, consisting of charges and expenses, or it may bid less. In some states, consisting of Texas, when the lending institution is the high bidder at the sale however bids less than the total debt, it can get a deficiency judgment (see listed below) against the debtor. If the lending institution is the highest bidder, the residential or commercial property becomes “realty owned” (REO).

But if a bidder, say a third celebration, is the highest bidder and offers more than you owe, and the sale leads to excess proceeds-that is, cash over and above what’s required to pay off all the liens on your property-you’re entitled to that surplus money.

Eviction

If you remain in the home after a foreclosure sale, the buyer of the residential or commercial property is required to supply you with a “notice to abandon” before submitting an eviction case. In Texas, this kind of case is referred to as a “forcible detainer” action.

In this article, you’ll discover information on foreclosure laws in Texas, with citations to statutes so you can find out more. Statutes alter, so inspecting them is always a good concept. How courts and agencies translate and apply laws can change. And some guidelines can even vary within a state. These are simply some of the factors to think about seeking advice from a legal representative if you’re facing a foreclosure.

How to Stop Foreclosure in Texas

A couple of prospective methods to stop a foreclosure and keep your home include reinstating the loan, working out a loss mitigation option (such as a loan modification), redeeming the residential or commercial property before the sale, or declare insolvency. Alternatively, you may be able to exercise a short sale or deed in lieu of foreclosure and avoid a foreclosure. But you’ll need to provide up your home with either of these alternatives.

Reinstating the Loan

Texas law permits the customer to obstruct a nonjudicial foreclosure sale by “reinstating” the loan (paying the past due amount) within 20 days after the lending institution serves the notification of default by mail. (Tex. Prop. Code § 51.002(d) (2025 ).)

Also, most deeds of trust supply extra time to restore. Check your loan documents to discover if you have more time to complete a reinstatement.

Filing for Bankruptcy

If you’re facing a foreclosure, applying for bankruptcy might help. If a foreclosure sale is set up to occur in the next day approximately, the finest method to stop the sale instantly is by applying for bankruptcy. Once you submit for personal bankruptcy, something called an “automatic stay” enters into result. The stay functions as an injunction, forbiding the lender from foreclosing on your home or trying to collect its debt, a minimum of briefly.

In a lot of cases, declaring Chapter 7 bankruptcy can delay the foreclosure by a matter of months. Or, if you wish to conserve your home, submitting for Chapter 13 personal bankruptcy may be the answer. To discover the choices offered, talk to a regional insolvency attorney.

Can I Get My House Back After a Texas Foreclosure?

One way to stop a foreclosure is by “redeeming” the residential or commercial property. To redeem, you need to settle the complete loan quantity before the foreclosure sale. To do this, you ‘d need to get your hands on a lot of money relatively rapidly. So, few house owners are able to finish a redemption before losing their home in a foreclosure sale.

Some states also provide foreclosed debtors a redemption duration after the foreclosure sale, throughout which they can redeem the home. However, Texas law does not offer customers a statutory right of redemption after a foreclosure. Once your Texas home has been foreclosed, you can’t redeem it to get it back.

Are Deficiency Judgments Allowed in Texas?

In a foreclosure, the borrower’s overall mortgage debt often exceeds the foreclosure list price. The difference in between the overall debt and the price is called a “deficiency.” For example, say the overall financial obligation owed is $300,000, however the home offers for $250,000 at the foreclosure sale. The deficiency is $50,000.

In some states, the lender can look for an individual judgment against the debtor to recuperate the shortage. Generally, once the lending institution gets a shortage judgment, the loan provider might gather this amount-in our example, $50,000-from the debtor.

Texas foreclosure laws permit deficiency judgments.

Texas Deficiency Judgment Laws

In Texas, the lender may obtain a deficiency judgment after a nonjudicial foreclosure. The lending institution should file a claim for a deficiency judgment within 2 years after the foreclosure sale. (Tex. Prop. Code § 51.003

( a) ). However, Texas state law permits the borrower to get credit for the residential or commercial property’s reasonable market worth. So, the borrower is entitled to a balanced out in the deficiency quantity if the residential or commercial property’s fair market price is higher than the foreclosure sale price. (Tex. Prop. Code § 51.003( b), (c )( 2025)

.) Texas Foreclosure Process for Home Equity Loans Is Different

In Texas, how a foreclosure will work depends on the kind of mortgage that’s being foreclosed. While there are several different types of loans, the most typical are:

– purchase money loans (a “purchase cash loan” is a loan gotten to purchase the residential or commercial property).
– purchase money second loans, and.
equity loans, like home equity loans and home equity lines of credit.

Again, most foreclosures in Texas including purchase cash loans are nonjudicial. But equity loan foreclosures are a little different. Under Texas law, the loan provider should utilize a quasi-judicial procedure to foreclose this sort of loan.

In this procedure, the lending institution needs to get a court order authorizing the foreclosure before conducting a nonjudicial foreclosure. Also, Texas law does not enable shortage judgments following the foreclosure of a home equity loan.

Home Equity Loan Foreclosures Involve an Extra Step: The Lender Must Litigate

Foreclosing an equity loan includes another action that falls in between sending out a breach letter and notice of sale: The lender needs to file an application in court requesting an order allowing the foreclosure. (Texas Rule of Civil Procedure 735, 736; Texas Constitution, Article XVI, § 50 [a] [6] [D] (2025 ).)

Responding to the foreclosure. The application needs to be served to you by mail, and you get 38 days from the date of mailing to submit a response. If you decide to respond, your reaction must remain in the appropriate format and might remain in the kind of a basic denial, however need to agreeably plead:

– why you think you didn’t sign the specified loan contract document.
– why you’re not bound to make payments.
– that the number of months of the alleged default (that is, the number of months the lender states you’re behind in payments) is inaccurate, or that the reinstatement or settle amounts the lending institution offered are materially inaccurate.
– that any file connected to the application is not a real and appropriate copy of the initial, or.
– that you made the payments (and you’ll need to supply evidence). (Texas Rule of Civil Procedure 736.5 (2025 ).)

You can’t raise any independent claims for relief. To fight the foreclosure on other premises, you’ll need to file your own lawsuit.

What happens if you submit a reaction. If you file an action to the application, the court sets a hearing that, like the action, is restricted in scope. The only issue in this kind of case is whether the loan provider can get an order allowing it to continue with foreclosure under the law and the regards to the loan contract. (See In re One West Bank, FSB, 430 S.W. 3d 573 (Tex.App. 2014)).

If the court grants the loan provider’s application at the hearing, the foreclosure will proceed. The lending institution will then send you a foreclosure sale notification.

Foreclosure Sale

Again, foreclosure sales are usually held the first Tuesday of monthly in between 10:00 a.m. and 4:00 p.m. at the county court house. The sale should start at the time mentioned in the notification of sale, but no behind 3 hours after the time arranged on the notice of sale. (Tex. Prop. Code § 51.002 (2025 ).)

Deficiency Judgment Following the Home Equity Loan Foreclosure

Texas law does not allow the loan provider to get a deficiency judgment versus you after foreclosing an equity loan. (Texas Constitution, Article XVI, § 50 [a] [6] [C] (2025 ).)

Get More Foreclosure Help and Information

To learn more on federal mortgage maintenance laws and foreclosure relief options, go to the Consumer Financial Protection Bureau (CFPB) site. The Texas Department of Housing and Community Affairs likewise supplies information about foreclosures, consisting of foreclosure FAQs, for Texas property owners. In addition, the Texas State Law Library has helpful details about the Texas foreclosure procedure.

If you have questions about Texas’s foreclosure process or wish to discover potential defenses to a foreclosure and perhaps battle the foreclosure in court, think about talking with a foreclosure lawyer. It’s also an excellent idea to speak with a HUD-approved housing counselor about different loss mitigation options.