Foreclosure Rights & Eviction in Texas
A foreclosure in Texas is the legal process used by a lender who wishes to regain possession of a home whose mortgage is in default. Although the homeowner loses the legal right of possession of the home in a foreclosure, he is not physically forced out of the house until the lender or new homeowner goes through the process of eviction.
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Notice to Cure
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The Texas homeowner receives a notice to cure from the lender holding the mortgage note once the mortgage is in default. The homeowner has a right to cure the problem by catching up with the mortgage payments or making other arrangements with the lender in order to get the house payments current. During this time, the homeowner can also opt to file bankruptcy to delay the foreclosure process or restructure the debt.
Foreclosure
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The notice to cure gives the homeowner twenty days to make some sort of payment arrangements before the foreclosure continues. Texas foreclosure sales occur on the first Tuesday of the month following the 20 day cure notice. The lender has to notify the homeowner that the entire mortgage loan amount is now due as well as informing him about the impending sale.
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Sale
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Texas foreclosure sales are cash-only sales with a minimum amount that the house can be sold for. The homeowner is free to bid on his property as well as the lender and any other parties. Texas does not give the homeowners a right to redeem the property following the foreclosure sale. For example, in some states the original homeowners have a certain amount of time after the foreclosure sale to purchase the home for its full price from the lender before possession changes to the new owner. This practice does not happen in a Texas foreclosure, and the new owner takes possession immediately after the sale.
Physical Eviction
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The lender or new owner has to file for a court order of eviction in order to make the homeowner leave the home, if he continues to live in the sold house. The constable serves the homeowner with the eviction summons and the hearing date. After the lender or new owner wins the eviction order, the original homeowner has five days to leave. After that, the constable escorts the homeowner off of the property.
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