Home Loans and Support

How long does foreclosure take in Texas?

The foreclosure process in Texas can be done either through the judicial or non-judicial process. The process typically moves rather quickly in Texas compared to most other states. You can lose you home in as little as two months from the time you stop making your monthly payments.

Below is a brief definition of the judicial and non judicial foreclosure process:

JUDICIAL FORECLOSURE

The judicial foreclosure process will involve your mortgage lender filing a lawsuit in court in order to foreclose on the defaulting property. For the lender to obtain this court action to begin the foreclosure, they must first prove that you are in default on your loan.

This way of foreclosure is done when there is no power of sale present in the original loan documents. Your home will be sold court order to the person who bids the most at the auction sale.

Since this foreclosure moves through court proceedings in some cases it may take longer to foreclose then the non-judicial way. This may benefit you in finding a solution to saving your home before the house is sold.

NON JUDICIAL FORECLOSURE

This way of foreclosure is used when there is a power of sale present in mortgage or deed of trust. When your loan docs are originally signed, you as the borrower preauthorize your lender to sale your home in order to pay off the mortgage’s remaining balance. The actual sale of your home is either done by your lender or the Trustee (typically title company).

Below is three steps that must be followed during the Texas foreclosure process:

  • Before you mortgage lender can begin the foreclosure, they are required to file with the county clerk a foreclosure notice at least twenty-one days prior to the actual sale. They must also mail a copy of this demand letter to the homeowner as well twenty-one days before the sale.
  • The actual day of the foreclosure must take place on the first Tuesday of the month between 10:00AM and 4:00PM. Even if the Tuesday is a legal holiday the sale will still proceed.
  • The property will then be sold to the highest bidder at the auction sale. There is no right of redemption in the state of Texas.

So remember regardless if the sale takes place through the judicial or non-judicial process, you may not have too much time to get your situation resolved if you begin to default on your payments.

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One Response to How long does foreclosure take in Texas?

  1. don says:

    Hi, what if we have an 80/ 20 loan and the smaller lender is the only one (at this point) the debt. How can the secondary (smaller) lender foreclose without the primary foreclosing? Can the secondary lender call for a sale of the property without the primary lender doing so?

      (Quote)  (Reply)

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