TEXAS FORECLOSURE PROCEDURES

-Summary of Texas Foreclosure Procedures

By Bill Woodall
Founder/CEO, AIREO.com

Mortgage liens on Real Estate in the State of Texas are secured by a Deed of Trust. The Foreclosure Procedure on these liens is a "Non-Judicial" Foreclosure. The following is a summary of the Texas Foreclosure Procedures.

TYPES OF FORECLOSURES:

• Judicial Foreclosure
• Non-Judicial Foreclosure

PRELIMINARY NOTICE:

Twenty-Day Demand Letter - The lender must mail a residential borrower a demand letter giving the borrower 20 days to come up with all the missed payments before proceeding with a foreclosure or sending them 21-day notice.

METHOD OF FORECLOSURE NOTICE:

Twenty-One-Day Foreclosure Notice - The trustee must send a foreclosure notice stating the date, place, and earliest time that the sale will take place. Usually the trustee will give a range such as between 10:00am and 1:00pm.

POSTING:

Foreclosure Notice must be posted at the County Courthouse at least 21 days prior to the Foreclosure Sale.

RECORD/FILING:

Foreclosure Notice must be filed with the county clerk at least 21 days prior to the Foreclosure Sale.

MAILING:

Foreclosure notice must be mailed to the Borrower at the last known address as shown in the records of the lender at least 21 days before the foreclosure.

SALE PROCEDURE:

The Foreclosure Sale takes place on the first Tuesday of each month, even if it is a holiday. The sale is held on the County Courthouse steps to the highest bidder for cash.

REDEMPTION:

There is no right of redemption in the State of Texas.

DEFICIENCY:

Texas limits deficiency judgments to the difference between fair market value and the loan balance and fees owed.