Laws of Foreclosure in Texas

A big house

In some states, foreclosures are a very time consuming and tedious process, but in Texas it's different. In Texas, it is fairly easy to foreclose on a property and the process moves quickly. During the pre-foreclosure period, the lender files a legal suit against the borrower and is then granted a court order to foreclose on the property.

Process

Most Texas foreclosures are called non-judicial foreclosures. This means that they don't involve court action. Foreclosures that are administered outside of the court go through a different process. First, the lender must mail a letter to the borrower. The letter will state that the borrower has a minimum of 20 days to pay the default amount on their loan. After the twenty days has passed, the lender can then mail another letter that informs that borrower that a sale will take place to recover the full amount on the loan.

Notice of Sale

The last part of the foreclosure process is the notice of sale and the auction. To legally sell the property, the lender must first post a notice of sale on the door of the county courthouse and mail a copy of that notice to the borrower. In some states, it's legally required that the notice of sale be published in the local newspaper, but in Texas this isn't necessary.

Dates

According to Realty Trac, foreclosure sales take place on the first Tuesday of each month. The auction starts at 10am and ends at 4pm. This time and date never changes, even if there is a holiday.

Location

In Texas, foreclosures are normally conducted on the steps of the given county's courthouse. The auction is public and the property simply goes to the highest cash bidder. The lender can also bid on the property if they wish.

Considerations

After a house has been sold at a foreclosure auction, the original homeowner does not have a right to redeem the property. For this reason, it's important that Texas homeowners stop foreclosures early.

References

• Realty Trac