1 Foreclosure Fact Sheet

rodgertravis11 edited this page 2025-08-31 18:06:11 +00:00

The foreclosure procedure in Texas involves tight deadlines and specific actions. To avoid foreclosure, talk with the loan provider about payment strategies, temporary forbearances, or loan adjustments.

Page Sections

- When can a lending institution start foreclosure?

• How can I prevent foreclosure?
• What is ?
• What is the foreclosure process?
• Can bankruptcy prevent foreclosure?
• Can I re-finance or sell my home to prevent foreclosure?
• Can I be sued for a shortage?
• Can I remain in my home throughout foreclosure?
• Additional Resources
  
  When can a loan provider start foreclosure?
  
  Most loans from a bank should be 120 days overdue before any foreclosure activity begins. However, smaller lending institutions can sometimes begin foreclosure even if you are only one day late.
  
  The lender is only needed to send you two notices before a foreclosure sale.
  
  How can I avoid foreclosure?
  
  Talk with your lender about a payment strategy, a momentary forbearance, or a loan modification. Pay what you can. If your payments are not accepted, save them until you can pay in full. For totally free foreclosure avoidance therapy, contact the HOPE ™ Hotline at 888-995-HOPE (4673) or check out 995Hope. The earlier you obtain assistance, the more rights and alternatives you will have.
  
  What is loss mitigation?
  
  Loss mitigation describes ways to prevent foreclosure. If you're behind in payments, ask your lender for a loss mitigation application packet.
  
  For a lot of servicers, if your application is total and received a minimum of 37 days before a scheduled sale, the lending institution must stop all foreclosure activities. If your lending institution starts foreclosure after you prompt sent your complete application, you have a right to file a suit to stop the sale.
  
  You can likewise file a grievance with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Complaint. Keep a copy of your application, attachments, and evidence of delivery (such as a fax confirmation page or tracking number) to prove receipt by your loan provider. Your lending institution should also send you a letter informing you whether your application is complete.
  
  Consumer laws, policies, policies, and assistance are changing quickly in 2025. Double-check any federal consumer-related information with official federal government sources, bearing in mind that those sources themselves may change rapidly. Talk to a legal representative for the current information.
  
  What is the foreclosure procedure?
  
  In Texas, foreclosure is typically a three-step process.
  
  ( Exception: If you have a home equity loan, home equity credit line, a tax lien transfer loan, or owe assessments to a house owner's association, a court order is usually needed before your residential or commercial property can be published for sale. In some circumstances, an order is also needed to foreclose on a reverse mortgage. A claim should be filed if a government entity is attempting to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, etc).
  
  Notice of Default (Demand Letter). By law, lenders and servicers are needed to send out a written notice enabling you 20 days to "treat" (pay completely the quantity owed) to bring the defaulted loan current. Some loans increase this period to one month (most FHA, VA and home equity loans).
  
  
  Notice of Sale Filed, Posted, and Mailed. Next, the law needs a minimum of 21 days' written notification of the date the foreclosure sale (auction) is to take location. The 21 days begin from the date the notification is sent by mail, not the date you get it. Failing to gather your licensed mail will not stop or revoke the foreclosure sale. The foreclosure notice is also posted at the court house and submitted with the county clerk.
  
  
  Foreclosure Sale. Foreclosure sales are held at the county court house on the very first Tuesday of every month. Anyone might bid. After the auction, you do not have a right to purchase back your residential or commercial property from the new owner unless it is being offered by a federal government entity, a tax loan provider, or for nonpayment of property owner's association fees. There are time frame involved, and in many cases, you must pay a redemption fee.
  
  
  Can insolvency prevent foreclosure?
  
  Declare insolvency will delay foreclosure but will not wipe out your lien or permit you to remain in the home without making payments. Chapter 13 is a reorganization in which certain debts are paid back in time, and the home can be saved. Chapter 7 is a liquidation and might delay a foreclosure, but typically, it will not enable you to keep your house if you are behind on payments.
  
  Can I re-finance or sell my home to prevent foreclosure?
  
  If you are behind in payments, refinancing is typically not an option. You can sell if the sale proceeds would pay off the mortgage and the expense of the sale.
  
  Can I be taken legal action against for a shortage?
  
  Lenders seldom demand a deficiency because of the time and expense included. If you are being demanded a deficiency, bankruptcy may be a great option for you.
  
  Can I remain in my home throughout foreclosure?
  
  You do not need to vacate on the sale date. If you are still living in the home after a foreclosure, the new owner will have to evict you. You'll get a notice to leave (generally giving three days' notice) before an expulsion is filed. Some loan providers will pay moving costs in order to avoid the time and cost of an eviction proceeding (called "money for secrets").
  
  Lone Star Legal Aid's Get Help If You Can't Pay Your Mortgage tool can assist you discover what actions you might take if facing foreclosure.
  
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