Understanding Foreclosure in Texas
Learn the basics of the foreclosure process, key terms, timelines, and what makes Texas different from other states.
What Is Foreclosure?
Foreclosure is the legal process by which a lender takes possession of a property and sells it to recover the balance of a loan when the borrower has defaulted (failed to make payments). In Texas, foreclosure is typically a non-judicial process, meaning the lender does not need to go to court to foreclose on your home.
When you take out a mortgage in Texas, you sign a deed of trust that gives the lender a security interest in your property. This deed includes a "power of sale" clause that allows the lender to sell your home at a public auction if you default on the loan.
The Texas Foreclosure Process (3 Steps)
You miss one or more mortgage payments. Under federal law, the lender cannot begin foreclosure proceedings until your loan is more than 120 days delinquent (approximately 4 missed payments).
The lender sends you a formal Notice of Default, giving you at least 20 days to cure the default by paying the past-due amount. This notice must be sent by certified mail.
If you do not cure the default, the lender schedules a foreclosure sale. The sale must occur on the first Tuesday of the month at the county courthouse, with at least 21 days' notice.
Texas Foreclosure Timeline
| Stage | Timeline | What Happens |
|---|---|---|
| First Missed Payment | Day 1 | Your loan becomes delinquent. Late fees may apply. |
| Federal Protection Period | Days 1-120 | Lender cannot start foreclosure. You can apply for loss mitigation. |
| Notice of Default Sent | Day 121+ | Lender sends formal notice. You have at least 20 days to cure. |
| Notice of Sale Posted | Day 141+ | Lender posts notice at courthouse and mails you a copy (21 days before sale). |
| Foreclosure Sale | Day 162+ | Property sold at public auction on first Tuesday of the month. |
Note: The entire process from the first missed payment to the foreclosure sale typically takes 6-7 months, but can be as fast as 5 months in Texas.
Types of Foreclosure in Texas
This is the standard foreclosure process in Texas for most conventional mortgages. The lender does not need to file a lawsuit or obtain a court judgment. The process is governed by the "power of sale" clause in your deed of trust.
- Fastest foreclosure process
- No court involvement required
- Lender must follow strict notice requirements
- Sale occurs at county courthouse on first Tuesday of the month
In rare cases, a lender may choose to foreclose through the court system. This process is slower and more expensive for the lender, so it is uncommon in Texas.
- Lender files a lawsuit
- Court issues a judgment and orders the sale
- Takes longer than non-judicial foreclosure
- May be used if the deed of trust is unclear or missing
Texas law requires a court order for foreclosures on home equity loans, reverse mortgages, and certain HOA liens. This process is faster than a full judicial foreclosure but still requires court approval.
- Required for home equity loans and reverse mortgages
- Lender files a motion for expedited foreclosure
- Court hearing typically within 10-20 days
- If approved, sale proceeds like non-judicial foreclosure
Key Terms to Know
Failure to meet the terms of your mortgage agreement, most commonly by not making required monthly payments.
A legal document that gives the lender a security interest in your property and includes a "power of sale" clause.
A formal written notice informing you that you have defaulted and that foreclosure proceedings may begin.
A public notice that your property will be sold at a foreclosure auction on a specific date.
In Texas, there is NO right of redemption for standard mortgage foreclosures. You cannot buy back your home after the sale.
A court order allowing the lender to collect the remaining balance if the foreclosure sale price is less than what you owe.