The foreclosure process in Texas involves tight deadlines and particular actions. To avoid foreclosure, talk with the lending institution about payment plans, short-lived forbearances, or loan modifications.

Page Sections

- When can a loan provider start foreclosure?
- How can I avoid foreclosure?
- What is loss mitigation?
- What is the foreclosure process?
- Can personal bankruptcy avoid foreclosure?
- Can I re-finance or sell my home to prevent foreclosure?
- Can I be demanded a shortage?
- Can I remain in my home throughout foreclosure?
- Additional Resources

When can a lender start foreclosure?

Most loans from a bank must be 120 days overdue before any foreclosure activity starts. However, smaller lenders can sometimes start foreclosure even if you are only one day late.

The lending institution is only required to send you 2 notifications before a foreclosure sale.

How can I avoid foreclosure?

Talk with your loan provider about a payment strategy, a momentary forbearance, or a loan adjustment. Pay what you can. If your payments are not accepted, save them until you can pay completely. For complimentary foreclosure avoidance counseling, call the HOPE ™ Hotline at 888-995-HOPE (4673) or go to 995Hope. The earlier you look for help, the more rights and options you will have.

What is loss mitigation?

Loss mitigation refers to methods to prevent foreclosure. If you're behind in payments, ask your loan provider for a loss mitigation application package.

For most servicers, if your application is total and gotten a minimum of 37 days before a scheduled sale, the lending institution needs to stop all foreclosure activities. If your loan provider starts foreclosure after you timely sent your total application, you have a right to file a match to stop the sale.

You can likewise submit a complaint 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 lender. Your loan provider should likewise send you a letter telling you whether your application is complete.

Consumer laws, guidelines, policies, and assistance are altering quickly in 2025. Double-check any federal consumer-related information with official government sources, bearing in mind that those sources themselves may change rapidly. Talk with an attorney for the most recent information.

What is the foreclosure procedure?

In Texas, foreclosure is normally 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 homeowner's association, a court order is generally required before your residential or commercial property can be posted for sale. In some circumstances, an order is likewise needed to foreclose on a reverse mortgage. A claim needs to be filed if a government entity is trying to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, etc).

Notice of Default (Demand Letter). By law, lending institutions and servicers are needed to send out a written notification permitting you 20 days to "treat" (pay completely the quantity owed) to bring the defaulted loan current. Some loans increase this duration to one month (most FHA, VA and home equity loans).

Notice of Sale Filed, Posted, and Mailed. Next, the law needs at least 21 days' composed notification of the date the foreclosure sale (auction) is to happen. The 21 days start from the date the notice is sent by mail, not the date you get it. Failing to collect your certified mail will not stop or invalidate the foreclosure sale. The foreclosure notice is also published at the courthouse and filed with the county clerk.

Foreclosure Sale. Foreclosure sales are held at the county court house on the very first Tuesday of monthly. Anyone might bid. After the auction, you do not have a right to purchase back your residential or commercial property from the brand-new owner unless it is being offered by a federal government entity, a tax loan provider, or for nonpayment of house owner's association charges. There are time frame involved, and in some cases, you should pay a redemption fee.

Can personal bankruptcy prevent foreclosure?

Filing for personal bankruptcy will postpone foreclosure but will not wipe out your lien or enable you to remain in the home without paying. Chapter 13 is a reorganization in which particular financial obligations are paid back in time, and the home can be conserved. Chapter 7 is a liquidation and might postpone a foreclosure, however normally, it will not permit you to keep your home if you lag on payments.

Can I refinance or offer my home to prevent foreclosure?

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

Can I be demanded a shortage?

Lenders hardly ever demand a shortage since of the time and expenditure involved. If you are being sued for a shortage, insolvency may be a good choice for you.

Can I stay in my home throughout foreclosure?

You do not need to move out on the sale date. If you are still residing in the home after a foreclosure, the brand-new owner will have to evict you. You'll get a notification to abandon (normally offering three days' notice) before an eviction is submitted. Some lenders will pay moving expenditures in order to prevent the time and cost of an eviction case (called "money for secrets").

Lone Star Legal Aid's Get Help If You Can't Pay Your Mortgage tool can help you learn what actions you might take if facing foreclosure.

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