The foreclosure process in Texas involves tight due dates and specific steps. To prevent foreclosure, talk with the lending institution about payment strategies, short-term forbearances, or loan modifications.
Page Sections
- When can a loan provider start foreclosure?
- How can I prevent foreclosure?
- What is loss mitigation?
- What is the foreclosure process?
- Can personal bankruptcy prevent foreclosure?
- Can I re-finance or offer my home to avoid foreclosure?
- Can I be sued for a shortage?
- Can I remain in my home throughout foreclosure?
- Additional Resources
When can a lending institution start foreclosure?
Most loans from a bank need to be 120 days delinquent before any foreclosure activity starts. However, smaller lenders can sometimes start foreclosure even if you are only one day late.
The lender is only needed to send you 2 notices before a foreclosure sale.
How can I prevent foreclosure?
Talk with your lender about a payment strategy, a momentary forbearance, or a loan modification. Pay what you can. If your payments are not accepted, save them until you can pay completely. Totally free foreclosure avoidance therapy, get in touch with the HOPE <20><><A2> Hotline at 888-995-HOPE (4673) or check out 995Hope. The earlier you request assistance, the more rights and choices you will have.
What is loss mitigation?
Loss mitigation describes ways to prevent foreclosure. If you lag in payments, ask your lender for a loss mitigation application package.
For many servicers, if your application is complete and received a minimum of 37 days before a scheduled sale, the loan provider needs to stop all foreclosure activities. If your lending institution starts foreclosure after you timely submitted your complete application, you have a right to submit a suit to stop the sale.
You can likewise file a problem with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Grievance. Keep a copy of your application, accessories, and evidence of delivery (such as a fax verification page or tracking number) to show receipt by your loan provider. Your lender should likewise send you a letter informing you whether your application is complete.
Consumer laws, regulations, policies, and guidance are changing rapidly in 2025. Double-check any federal consumer-related details with official federal government sources, keeping in mind that those sources themselves might change quickly. Speak to an attorney for the current details.
What is the foreclosure process?
In Texas, foreclosure is generally a three-step process.
( Exception: If you have a home equity loan, home equity line of credit, a tax lien transfer loan, or owe evaluations to a house owner's association, a court order is usually needed before your residential or commercial property can be published for sale. In some instances, an order is also required to foreclose on a . A lawsuit must be filed if a government entity is attempting to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, etc).
Notice of Default (Demand Letter). By law, lending institutions and servicers are needed to send a written notification permitting you 20 days to "treat" (pay in full the quantity owed) to bring the defaulted loan current. Some loans increase this period to thirty days (most FHA, VA and home equity loans).
Notice of Sale Filed, Posted, and Mailed. Next, the law requires a minimum of 21 days' composed notice of the date the foreclosure sale (auction) is to take place. The 21 days start from the date the notice is sent by mail, not the date you receive it. Failing to collect your qualified mail will not stop or invalidate the foreclosure sale. The foreclosure notice is also published at the courthouse and filed with the county clerk.
Foreclosure Sale. Foreclosure sales are held at the county courthouse on the first Tuesday of each month. Anyone may bid. After the auction, you do not have a right to purchase back your residential or commercial property from the new owner unless it is being sold by a federal government entity, a tax loan provider, or for nonpayment of house owner's association costs. There are time frame involved, and sometimes, you should pay a redemption cost.
Can personal bankruptcy avoid foreclosure?
Filing for personal bankruptcy will postpone foreclosure however will not erase your lien or permit you to remain in the home without paying. Chapter 13 is a reorganization in which specific debts are paid back with time, and the home can be saved. Chapter 7 is a liquidation and may delay a foreclosure, however usually, it will not allow you to keep your home if you lag on payments.
Can I refinance or offer my home to avoid foreclosure?
If you lag in payments, refinancing is normally not an option. You can sell if the sale earnings would pay off the mortgage and the expense of the sale.
Can I be taken legal action against for a shortage?
Lenders rarely take legal action against for a shortage due to the fact that of the time and expense involved. If you are being taken legal action against for a shortage, personal bankruptcy might be a great choice for you.
Can I remain in my home throughout foreclosure?
You do not have to vacate on the sale date. If you are still living in the home after a foreclosure, the new owner will have to evict you. You'll get a notice to abandon (typically giving three days' notification) before an expulsion is filed. Some lenders will pay moving expenditures in order to avoid the time and expenditure of an eviction case (called "money for keys").
Lone Star Legal Aid's Get Help If You Can't Pay Your Mortgage tool can assist you discover what actions you might take if facing foreclosure.
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