Question 1

Is Texas a judicial or non-judicial foreclosure state?

Accepted Answer

Both. Most Texas home foreclosures are non-judicial ("power of sale") foreclosures: if the deed of trust has a power-of-sale clause, the lender can sell the property at a public auction without filing a lawsuit. Judicial foreclosure, where the lender sues and gets a court judgment before the sale, is rare in Texas. A court order is required for certain liens, such as home equity loans, reverse mortgages and property owners' association assessments; these often use an "expedited" court procedure under Texas Rules of Civil Procedure 735 and 736.

Question 2

What notice is required before a foreclosure sale in Texas?

Accepted Answer

For a home used as the borrower's residence, the mortgage servicer must first send a written notice of default by certified mail giving the borrower at least 20 days to cure before a notice of sale can be given. The notice of sale must then be given at least 21 days before the sale by posting it at the courthouse door of each county where the property is located, filing a copy with the county clerk, and sending it by certified mail to each debtor obligated on the loan. Counties must post filed notices of sale on their websites along with the sale date, time and location. Notices to the debtor must include a statement about rights of active-duty military members.

Question 3

How long does foreclosure take in Texas?

Accepted Answer

The statute sets these minimums for a non-judicial sale: at least 20 days to cure after the notice of default before the notice of sale can be given, and at least 21 days between the notice of sale and the sale. The sale must be a public auction held between 10 a.m. and 4 p.m. on the first Tuesday of a month (the first Wednesday if the first Tuesday falls on January 1 or July 4), at the area of the county courthouse designated by the commissioners court.

Question 4

Can you stop a foreclosure by catching up on payments in Texas?

Accepted Answer

For a residence, the servicer's written notice of default must give the borrower at least 20 days to cure the default before the notice of sale can be given. The day the default notice is given counts toward the 20 days, and the day the notice of sale is given does not.

Question 5

Is there a right of redemption after foreclosure in Texas?

Accepted Answer

There is no general right to redeem a home after an ordinary mortgage foreclosure sale. According to the Texas State Law Library, the right of redemption in Texas is only available for specific kinds of foreclosures, such as certain property tax lien foreclosures and property owners' (or condominium) association assessment lien foreclosures.

Question 6

Can the lender come after you for the rest of the loan after foreclosure in Texas?

Accepted Answer

Yes. If a home sells at a non-judicial foreclosure sale for less than the unpaid debt, the lender may sue for the deficiency, but the suit must be brought within two years of the sale. The borrower may ask the court to determine the property's fair market value as of the sale date; if the fair market value is higher than the sale price, the borrower gets an offset. Any money the lender received from private mortgage insurance must be credited to the borrower before a deficiency suit. After a judicial foreclosure sale, a person obligated on the debt may sue within 90 days of the sale to have the fair market value determined for a similar offset.

Question 7

What happens to tenants when a rental home is foreclosed in Texas?

Accepted Answer

If a building is bought at a trustee's or tax foreclosure sale and a residential tenant keeps paying rent on time and is not otherwise in default, the buyer must give the tenant at least 30 days' written notice to vacate if the buyer chooses not to continue the lease. Before the sale, the foreclosing lender may give tenants written notice of the scheduled foreclosure date. The Texas State Law Library also explains that the federal Protecting Tenants at Foreclosure Act generally lets bona fide tenants with a lease stay until the lease ends (unless the new owner will live in the home), and requires at least 90 days' notice to end a tenancy, including month-to-month tenancies.

Question 8

Can an HOA foreclose on your home in Texas?

Accepted Answer

Yes, if the association's governing documents give it a lien and a right to foreclose. A property owners' association may not foreclose if the debt consists only of fines (or attorney's fees tied only to fines). It must generally get a court order first, through an expedited court procedure or a judicial foreclosure lawsuit, unless the owner agrees otherwise. Before filing an assessment lien, the association must send the owner two notices. After an association foreclosure sale, the owner (or a lienholder) may redeem the property within 180 days after the association mails written notice of the sale, and a buyer of occupied property must file an eviction case to get possession.

Question 9

What must a home seller disclose in Texas?

Accepted Answer

Yes. A seller of a home with not more than one dwelling unit must give the buyer a written "Seller's Disclosure Notice" (or a substantially similar notice containing at least all the same items) about the property's condition. The law exempts some transfers, including foreclosure sales, court-ordered sales, transfers by a lender that acquired the home through foreclosure or deed in lieu, and transfers between co-owners or to a spouse or close relative.

Question 10

How do you get your home back after a tax sale in Texas?

Accepted Answer

If the property was the owner's residence homestead (or agricultural land) when the tax suit was filed, the owner may redeem it within two years after the buyer's deed is recorded by paying the buyer's bid, the deed recording fee, and taxes, penalties, interest and costs the buyer paid, plus a redemption premium of 25% if redeemed in the first year or 50% in the second year. Other property may be redeemed within 180 days after the deed is recorded, with a premium of no more than 25%. Different payment rules apply if the property was bid off to a taxing unit and not resold.

Question 11

Where can homeowners get free foreclosure help in Texas?

Accepted Answer

The Texas Department of Housing and Community Affairs (TDHCA) directs homeowners facing foreclosure to free HUD-approved foreclosure counseling (1-800-569-4287) and the Homeownership Preservation Foundation's HOPE Hotline (1-888-995-4673), and advises contacting the lender or servicer about alternatives to foreclosure.

Judicial or non-judicial	Both. Most Texas home foreclosures are non-judicial ("power of sale") foreclosures: if the deed of trust has a power-of-sale clause, the lender can sell the property at a public auction without filing a lawsuit. Judicial foreclosure, where the lender sues and gets a court judgment before the sale, is rare in Texas. A court order is required for certain liens, such as home equity loans, reverse mortgages and property owners' association assessments; these often use an "expedited" court procedure under Texas Rules of Civil Procedure 735 and 736. Source: Tex. Prop. Code § 51.002; Texas State Law Library, Foreclosure guide (General Information)
Required notices	For a home used as the borrower's residence, the mortgage servicer must first send a written notice of default by certified mail giving the borrower at least 20 days to cure before a notice of sale can be given. The notice of sale must then be given at least 21 days before the sale by posting it at the courthouse door of each county where the property is located, filing a copy with the county clerk, and sending it by certified mail to each debtor obligated on the loan. Counties must post filed notices of sale on their websites along with the sale date, time and location. Notices to the debtor must include a statement about rights of active-duty military members. Source: Tex. Prop. Code § 51.002(b), (d), (f-1), (i)
Time frames set by law	The statute sets these minimums for a non-judicial sale: at least 20 days to cure after the notice of default before the notice of sale can be given, and at least 21 days between the notice of sale and the sale. The sale must be a public auction held between 10 a.m. and 4 p.m. on the first Tuesday of a month (the first Wednesday if the first Tuesday falls on January 1 or July 4), at the area of the county courthouse designated by the commissioners court. The Texas State Law Library notes that a federal Consumer Financial Protection Bureau rule (12 C.F.R. § 1024.41(f)) generally requires a mortgage loan to be more than 120 days delinquent before a foreclosure is started. Source: Tex. Prop. Code § 51.002(a), (a-1), (b), (d)
Right to catch up (reinstate)	For a residence, the servicer's written notice of default must give the borrower at least 20 days to cure the default before the notice of sale can be given. The day the default notice is given counts toward the 20 days, and the day the notice of sale is given does not. Source: Tex. Prop. Code § 51.002(d)

Redemption after the sale	There is no general right to redeem a home after an ordinary mortgage foreclosure sale. According to the Texas State Law Library, the right of redemption in Texas is only available for specific kinds of foreclosures, such as certain property tax lien foreclosures and property owners' (or condominium) association assessment lien foreclosures. Source: Texas State Law Library, Foreclosure guide (After the Sale: Right of Redemption)
Deficiency judgments	Yes. If a home sells at a non-judicial foreclosure sale for less than the unpaid debt, the lender may sue for the deficiency, but the suit must be brought within two years of the sale. The borrower may ask the court to determine the property's fair market value as of the sale date; if the fair market value is higher than the sale price, the borrower gets an offset. Any money the lender received from private mortgage insurance must be credited to the borrower before a deficiency suit. After a judicial foreclosure sale, a person obligated on the debt may sue within 90 days of the sale to have the fair market value determined for a similar offset. Source: Tex. Prop. Code §§ 51.003, 51.004
Tenants in a foreclosed home	If a building is bought at a trustee's or tax foreclosure sale and a residential tenant keeps paying rent on time and is not otherwise in default, the buyer must give the tenant at least 30 days' written notice to vacate if the buyer chooses not to continue the lease. Before the sale, the foreclosing lender may give tenants written notice of the scheduled foreclosure date. The Texas State Law Library also explains that the federal Protecting Tenants at Foreclosure Act generally lets bona fide tenants with a lease stay until the lease ends (unless the new owner will live in the home), and requires at least 90 days' notice to end a tenancy, including month-to-month tenancies. State Law Library tenant page: https://guides.sll.texas.gov/foreclosure/tenant-rights Source: Tex. Prop. Code § 24.005(b); Texas State Law Library, Foreclosure guide (Tenant Rights in a Foreclosure)

HOA liens and foreclosure	Yes, if the association's governing documents give it a lien and a right to foreclose. A property owners' association may not foreclose if the debt consists only of fines (or attorney's fees tied only to fines). It must generally get a court order first, through an expedited court procedure or a judicial foreclosure lawsuit, unless the owner agrees otherwise. Before filing an assessment lien, the association must send the owner two notices. After an association foreclosure sale, the owner (or a lienholder) may redeem the property within 180 days after the association mails written notice of the sale, and a buyer of occupied property must file an eviction case to get possession. The Texas State Law Library's HOA foreclosure page summarizes these rules: https://guides.sll.texas.gov/foreclosure/hoa-foreclosures Source: Tex. Prop. Code §§ 209.009, 209.0092, 209.0094, 209.011
Property tax sales	If the property was the owner's residence homestead (or agricultural land) when the tax suit was filed, the owner may redeem it within two years after the buyer's deed is recorded by paying the buyer's bid, the deed recording fee, and taxes, penalties, interest and costs the buyer paid, plus a redemption premium of 25% if redeemed in the first year or 50% in the second year. Other property may be redeemed within 180 days after the deed is recorded, with a premium of no more than 25%. Different payment rules apply if the property was bid off to a taxing unit and not resold. Source: Tex. Tax Code § 34.21
Seller disclosure	Yes. A seller of a home with not more than one dwelling unit must give the buyer a written "Seller's Disclosure Notice" (or a substantially similar notice containing at least all the same items) about the property's condition. The law exempts some transfers, including foreclosure sales, court-ordered sales, transfers by a lender that acquired the home through foreclosure or deed in lieu, and transfers between co-owners or to a spouse or close relative. Source: Tex. Prop. Code § 5.008

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