The foreclosure procedure in Texas involves tight deadlines and particular actions. To prevent foreclosure, speak to the lender about payment strategies, short-lived forbearances, or loan modifications.

Page Sections

- When can a loan provider start foreclosure?
- How can I prevent foreclosure?
- What is loss mitigation?
- What is the foreclosure procedure?
- Can insolvency prevent foreclosure?
- Can I refinance or offer my home to avoid foreclosure?
- Can I be taken legal action against for a shortage?
- Can I stay in my home during foreclosure?
- Additional Resources

When can a loan provider start foreclosure?

Most loans from a bank should be 120 days delinquent before any foreclosure activity begins. However, smaller loan providers can in some cases begin foreclosure even if you are only one day late.

The lender is just needed to send you two notices before a foreclosure sale.

How can I prevent foreclosure?

Talk with your lending institution about a payment strategy, a short-term forbearance, or a loan adjustment. Pay what you can. If your payments are declined, save them till you can pay completely. Totally free foreclosure prevention counseling, get in touch with the HOPE ™ Hotline at 888-995-HOPE (4673) or check out 995Hope. The earlier you obtain support, the more rights and alternatives you will have.

What is loss mitigation?

Loss mitigation refers to ways to avoid foreclosure. If you lag in payments, ask your lender for a loss mitigation application packet.

For the majority of servicers, if your application is complete and received at least 37 days before a scheduled sale, the loan provider should stop all foreclosure activities. If your lender starts foreclosure after you prompt submitted your complete application, you have a right to submit a suit to stop the sale.

You can likewise submit a problem with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Grievance. Keep a copy of your application, accessories, and proof of delivery (such as a fax confirmation page or tracking number) to prove invoice by your lender. Your loan provider ought to also send you a letter informing you whether your application is total.

Consumer laws, regulations, policies, and assistance are altering rapidly in 2025. Double-check any federal consumer-related information with official government sources, keeping in mind that those sources themselves may alter quickly. Talk with a legal representative for the most current details.

What is the foreclosure process?

In Texas, foreclosure is generally 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 normally needed before your residential or commercial property can be posted for sale. In some instances, an order is also needed to foreclose on a reverse mortgage. A suit must be submitted if a federal 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 a composed notification permitting 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 requires a minimum of 21 days' composed notice of the date the foreclosure sale (auction) is to occur. The 21 days start from the date the notice is mailed, not the date you get it. Failing to collect your qualified mail will not stop or revoke the foreclosure sale. The foreclosure notice is likewise published at the court house and submitted with the county clerk.

Foreclosure Sale. Foreclosure sales are held at the county courthouse on the very first Tuesday of monthly. Anyone might bid. After the auction, you do not have a right to redeem 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 homeowner's association costs. There are time frame included, and in many cases, you must pay a redemption cost.

Can insolvency avoid foreclosure?

Filing for bankruptcy will delay foreclosure however will not eliminate your lien or permit you to remain in the home without paying. Chapter 13 is a reorganization in which particular debts are repaid gradually, and the home can be saved. Chapter 7 is a liquidation and may delay a foreclosure, however usually, it will not allow you to keep your house if you are behind on payments.

Can I re-finance or offer my home to avoid foreclosure?

If you are behind in payments, refinancing is generally not a choice. You can offer if the sale earnings would settle the mortgage and the cost of the sale.

Can I be taken legal action against for a shortage?

Lenders rarely demand a deficiency due to the fact that of the time and cost involved. If you are being demanded a shortage, personal bankruptcy might be a great choice for you.

Can I remain in my home during foreclosure?

You do not need to move out on the sale date. If you are still living in the home after a foreclosure, the brand-new owner will have to evict you. You'll get a notification to abandon (typically offering three days' notice) before an eviction is filed. Some loan providers will pay moving expenditures in order to prevent the time and expenditure of an eviction proceeding (called "cash for secrets").

Lone Star Legal Aid's Get Help If You Can't Pay Your Mortgage tool can assist you discover what actions you may take if dealing with foreclosure.

Print.


Related Articles

- Alternatives to Bankruptcy

This article describes your other options if you are considering applying for insolvency.
Read More

- Chapter 13 Bankruptcy Fact Sheet

This post informs you what a Chapter 13 personal bankruptcy is and what it can and can not do.
Learn more

- Chapter 7 Bankruptcy Fact Sheet

This post describes what can and can not be done through a Chapter 7 bankruptcy.
Read More

Related Forms

Get Help If You Can't Pay Your Mortgage

Topics

- Foreclosure.
- House & Apartment

- About Us.
- Sponsors.
- Order Outreach Materials.
- Feedback.
- Privacy.
- Disclaimer.
- Printing Costs Policy

TexasLawHelp.org is managed by Texas Legal Services Center, a 501( c)( 3) nonprofit company. TLSC provides complimentary legal services to underserved Texans in requirement of education, guidance, and representation.

Free. Not for sale. The details and types available on this site are totally free. They are not for sale. By utilizing this site, you concur not to sell or make a profit in any method from any details or kinds that you obtained through this website.