Redemption and Deficiency Judgments in Texas
Whether you can buy back your home after a foreclosure sale in Texas, and whether the lender can sue for what's still owed.
Short 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… Texas State Law Library, Foreclosure guide (After the Sale: Right of Redemption)
| 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. |
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| 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. |
More Texas foreclosure & homeowner law
- How Foreclosure Works in Texas
- HOA Liens and Foreclosure in Texas
- Getting Your Home Back After a Tax Sale in Texas
- All Texas foreclosure & homeowner law rules
FAQ
Is there a right of redemption after foreclosure in Texas?
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.
Can the lender come after you for the rest of the loan after foreclosure in Texas?
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.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.