The foreclosure process in Texas includes tight due dates and particular actions. To avoid foreclosure, talk to the loan provider about payment plans, temporary forbearances, or loan adjustments.

Page Sections

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

When can a lending institution start foreclosure?

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

The loan provider is just required to send you two notifications before a foreclosure sale.

How can I avoid foreclosure?

Talk with your loan provider about a payment plan, a short-lived forbearance, or a loan modification. Pay what you can. If your payments are declined, conserve them until you can pay completely. Free of charge foreclosure avoidance counseling, contact the HOPE ™ Hotline at 888-995-HOPE (4673) or check out 995Hope. The earlier you use for support, the more rights and alternatives you will have.

What is loss mitigation?

Loss mitigation refers to methods to prevent foreclosure. If you lag in payments, ask your lending institution for a loss mitigation application packet.

For the majority of servicers, if your application is total and received a minimum of 37 days before a scheduled sale, the lender must stop all foreclosure activities. If your lending institution begins foreclosure after you timely submitted your complete application, you have a right to file a fit to stop the sale.

You can likewise file a complaint with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Problem. Keep a copy of your application, accessories, and proof of delivery (such as a fax verification page or tracking number) to prove invoice by your lending institution. Your lender ought to likewise send you a letter telling you whether your application is total.

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

What is the foreclosure procedure?

In Texas, foreclosure is generally a three-step procedure.

( Exception: If you have a home equity loan, home equity line of credit, a tax lien transfer loan, or owe assessments to a homeowner's association, a court order is typically 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 lawsuit should 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 written notice enabling you 20 days to "treat" (pay completely the quantity owed) to bring the defaulted loan current. Some loans increase this period to 30 days (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 happen. The 21 days start from the date the notice is mailed, not the date you get it. Failing to gather your certified mail will not stop or revoke the foreclosure sale. The foreclosure notice is likewise posted at the courthouse and filed with the county clerk.

Foreclosure Sale. Foreclosure sales are held at the county courthouse on the very first Tuesday of each month. Anyone may 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 sold by a federal government entity, a tax lender, or for nonpayment of property owner's association charges. There are time limitations involved, and sometimes, you must pay a redemption charge.

Can personal bankruptcy prevent foreclosure?

Declare insolvency will postpone foreclosure however will not erase your lien or permit you to stay in the home without paying. Chapter 13 is a reorganization in which certain debts are repaid over time, and the home can be conserved. Chapter 7 is a liquidation and might postpone a foreclosure, however normally, it will not allow you to keep your house if you lag on payments.

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

If you lag in payments, refinancing is usually not an alternative. You can sell if the sale earnings would settle the mortgage and the expense of the sale.

Can I be demanded a deficiency?

Lenders seldom demand a deficiency due to the fact that of the time and cost included. If you are being demanded a deficiency, personal bankruptcy may be a good option for you.

Can I remain in my home during foreclosure?

You do not need to vacate on the sale date. If you are still residing in the home after a foreclosure, the new owner will have to evict you. You'll get a notification to leave (generally giving 3 days' notification) before an expulsion is filed. Some loan providers will pay moving expenses in order to avoid the time and cost of an expulsion proceeding (called "cash for keys").

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 facing foreclosure.

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