What is the foreclosure process in Texas?

How long do Texas homeowners have before losing their homes if they default on their mortgage? Without help, it could be sooner than you think. According to the Texas foreclosure process, it could, in actuality, occur in a 41-day time frame.

That is not to say that it always occurs at that rapid of a pace, but it is an actual possibility. There are three steps to a Texas foreclosure once a borrower has defaulted on his or her mortgage. A default occurs as soon as you miss a payment, although it may take a while before the lender contacts you. This does not mean you are not, however, in default.

Once your mortgage is in default, a lender may begin the foreclosure process. The first step is give the borrower 20 days in which to resolve the issue. They must notify the borrower by written notice.

If the mortgage is not brought current within the allotted 20-day period, the second step of the process may be initiated. A notice of proposed sale of the property is filed with the County Clerk and posted on the courthouse door. The sale cannot be scheduled to take place any earlier than 21 days after the 20-day period given to the borrower. The borrower must also be sent a notice by certified mail 21 days prior to the sale date.

The third step is the actual sale, which takes place by auction on the steps of the courthouse. These auctions occur on the first Tuesday of every month.

Because Texas does not have a “right of redemption” law, a foreclosure sale is final. At this time, if the previous homeowner has not vacated his or her property, he or she can be evicted by the new owner.

It most cases, it takes a bit longer than 41 days, but Texas’ foreclosure steps are not extremely complicated, and once the process is started, it can move quickly. There are ways to avoid foreclosure if a homeowner is facing a period of financial distress and get behind on his or her mortgage payments, but a borrower should not hesitate to contact help — perhaps a bankruptcy attorney or a foreclosure attorney — at his or her earliest opportunity.

Not all mortgage lenders will move this quickly on a foreclosure process, but according to Texas law, they have the right to do so.

Source: KeepMyTexasHome.org, “The foreclosure process” Dec. 20, 2014