Home foreclosure is preventable. If you get behind in your mortgage payments or haven’t paid your property taxes, and receive a foreclosure notice in the mail, you need to act quickly. Get someone in your corner right away who can help you. Get a professional who can help you avoid foreclosure.
In Texas, lenders may foreclose on deeds of trust or mortgages in default using either a judicial or non-judicial foreclosure process. The foreclosure process in Texas moves swiftly, usually only taking about ninety days, and is weighted in favor of the lender. That’s why you need a professional to help you tilt the odds in your favor. It might be handled in court or out of court, and there are standard procedures that apply in each case.
The foreclosure is handled as a judicial process, if no power-of-sale clause was included in the mortgage documentation or the deed of trust. This is how it works. The lender files a lawsuit against the borrower and obtains a court order to foreclose on the property. Once that court order is granted, the property is scheduled for public sale.
The foreclosure would be handled outside of a court’s jurisdiction if a power-of-sale clause exists in the mortgage or deed of trust. This clause says the borrower has, in the event of default, pre-authorized the sale of the property to pay off the loan balance. Then, the lender or his representative, called the “trustee”, has the power to sell the property without going to court.
In this case the lender first sends a letter to the borrower allowing him a minimum of 20 days to pay the arrears on the loan, inclusive of costs. After this time period has elapsed, the lender may begin the actual foreclosure process by mailing a second letter to the borrower which states that the full balance is now due, and a sale has been scheduled to recover the full amount due. The lender is required to display a notice of sale on the county courthouse door and also to file a notice of foreclosure sale with the country clerk 21 days prior to the sale of the property. At this a time the lender is also obligated to mail to the borrower at his last known address, a copy of the notice of sale. It is not necessary for the lender in Texas to publish the notice of the sale in the local newspaper of the area the home is located.
The foreclosure sale is held as a public auction and the property goes to the highest bidder, who must pay in cash. The lender can also bid on the property. At the completion of the auction, the trustee transfers ownership to the highest bidder. The title will be free and clear of any secondary mortgages but will still have the primary mortgages registered. Unlike some other states, there is no redemption period in Texas. Once the sale is held, the borrower has no right to redeem the property.
You Can Avoid Foreclosure in Texas
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