Texas home and property foreclosures are extremely easier to carry out as compared to other states. The entire process can take only three months. Lenders may foreclose on a mortgage in default using either a judicial or non-judicial foreclosure process. The majority of Texas mortgages include a power of sale or a deed of trust which allows for a non-judicial foreclosure process.

When no power of sale is present in the mortgage or deed of trust, the foreclosure process must be administered by the court. The lender will need to file a complaint stating the default, and record a notice of Lis Pendens. The borrower will be served a notice of the complaint by mail, direct service, or publication notice, and will have the opportunity to be heard by the court. After the hearing, the court will find if the debt is valid, and in default, issuing a judgment for the amount owed. Once the court declares foreclosure, the property is scheduled for public sale and auctioned off to the highest bidder.

Non Judicial Foreclosure

Before starting the foreclosure process, the lender must first mail a letter to the borrower(s) to pay the default amount on the loan within 20days. If the borrower does not pay the default by the end of this period, the lender can begin the foreclosure process by mailing a second letter which states that the loan now has the full balance due, and a sale has been scheduled to recover the full amount. The lender must post a notice of sale on the county courthouse door and file a foreclosure notice with the county clerk 3 weeks prior to the sale. The borrower must receive a copy of the notice.

The sale will take place between 10 a.m. and 4 p.m. on the first Tuesday of the month (regardless of holidays) on the county courthouse steps. The sale will be conducted as a public auction and the property goes to the highest bidder who pays cash. The lender can also bid on the property. Any amount over the loan amount due will go towards any junior lien holders on the property. In Texas, the borrower has no right of redemption after the sale.

The Hopping Law Firm, P.L.L.C.

At the Hopping Law Firm, we have successfully represented numerous clients resolve financial, credit, and bankruptcy problems. Our experienced attorneys will provide you with legal advice for your foreclosure case, and explore every possible option available.

For a free consultation, contact The Hopping Law Firm, P.L.L.C., in Dallas / Fort Worth. We are here to help.