The Texas Foreclosure Process

In Texas, though some Lenders give homeowners plenty of time to catch up their loan payments, they are not required to do so. Texas is a Non-Judicial State meaning that Lenders do not need to file a lawsuit and receive a judgement from an appointed judge in order to foreclosure on your home. This makes the Foreclosure Process relatively short in the state of Texas. Here is a brief summary of the steps in the Texas Foreclosure Process:

Step 1 – Missed Payments: Generally, Texas law allows Lenders to initiate foreclosure proceedings once 3 mortgage payments have been missed and the loan has been delinquent for at least 120 days.

Step 2 – Notice of Default: The lender sends a Notice of Default to the borrower by certified mail, giving them at least 20 days to cure the default by paying all past-due amounts plus any allowed fees.

Step 3 - Notice of Sale: If the borrower does not cure the default, the lender sends a Notice of Sale at least 21 days before the foreclosure sale. The Notice of Sale is also filed with the county clerk and posted at the county courthouse. At this point the fact that you are being foreclosed becomes public information.

Step 4 - Foreclosure Sale: The property is sold at a public auction to the highest bidder for cash. If there are no other bidders at the foreclosure sale, then your lender is the default purchaser of your property.

Additional Notes from a Real Estate Investor’s point of view:

Since the Notice of Sale is also filed with the county clerk and posted at the county courthouse, they are effectively public information and there are companies that go over each posting and add them to their Database which the sell to third parties. Many real estate investors purchase these lists and will start contacting homeonwers by text message, phone, email, or even in person by knocking at your door. Once you are on a foreclosure list, it is impossible to be removed, so unfortunately, even if you resolve your financial issue, many people will be trying to contact you with the large majority wanting to buy your home at a deep discount. Don’t sell to these people without contacting us.

At Texas Equity Heroes, our goal is truly to help you keep your home. And if not, we want to make sure you keep as much equity as possible. Please contact us if you’d like to know how we can help.

God Bless,

    Francois Tessier

Disclaimer: We are not licensed attorneys or licensed real estate professionals. Please consult a licensed professional before making any decision on what to do with your home.