We Help Texas Homeowners Stop Foreclosure Immediately and Keep Their Homes at No Cost to Them!

In a Texas foreclosure, you'll almost certainly be granted the following rights to:

• A breach letter prior to foreclosure
• Submit an application for loss mitigation
• Notices of pending foreclosure
• Stop the foreclosure sale by getting current on your loan.
• If you're a member of the military, you'll be given extra protection.
• Pay down the debt to avoid a foreclosure
• To declare bankruptcy, and
• After a foreclosure sale, collect any leftover funds.

The "preforeclosure" stage occurs after you fall behind on your payments but before a foreclosure is formally started. (Sometimes, the period leading up to a foreclosure sale is referred to as "preforeclosure.") During this time, the servicer can charge you different fees, such as late fees and inspection fees, and in most circumstances, you must be informed about methods to avoid foreclosure and receive a "breach letter," which is a pre-foreclosure notice.

Most loans have a grace period of ten or fifteen days if you miss a payment, after which the servicer will charge you a late fee. The servicer will charge you this amount every month you skip a payment. Examine the promissory note you signed to determine the amount of the late fee and the grace period for your loan. This information is also available on your monthly mortgage statement.

In addition, most Texas deeds of trust empower the lender (or current loan holder, referred to as "lender" in this article) to take steps to defend its interest in the property. Inspections are carried out on properties to check that they are occupied and well-maintained. When a loan goes into default, an inspection, which is usually a drive-by, is normally ordered automatically and costs roughly $10 or $15.

Fees for broker's pricing opinions, which are similar to appraisals, and property preservation charges, such as yard maintenance or winterizing an abandoned home, are some of the other sorts of fees the servicer may collect.

Under federal mortgage servicing laws, the servicer must contact you by phone, or attempt to contact you by phone, no later than 36 days after you miss a payment to discuss loss mitigation options such as a loan modification, forbearance, or repayment plan, and again within 36 days after each subsequent delinquency. The servicer must notify you in writing about loss mitigation options that may be available 45 days after you miss a payment and appoint staff to help you try to work out a way to avoid foreclosure. Some of these obligations are exempted, such as if you've declared bankruptcy or requested that the servicer not contact you under the Fair Debt Collection Practices Act 

Dual tracking is also prohibited by federal mortgage servicing requirements (pursuing a foreclosure while a complete loss mitigation application is pending).

Before the lender can accelerate the loan, many Texas deeds of trust have a provision that requires the lender to issue you a notification, generally referred to as a "breach letter," advising you that the loan is in default. You have a chance to remedy the default and prevent foreclosure with the breach letter.

With a few exceptions, the servicer can't start a foreclosure unless you're more than 120 days behind on payments, according to federal law. Most homeowners will have plenty of time to file a loss mitigation application to the servicer within the 120-day preforeclosure period.

If your mortgage defaults in Texas, your lender may foreclose on your home by judicial or nonjudicial means.

What is the Process of Judicial Foreclosure?
When a lender files a lawsuit seeking a court judgment enabling a foreclosure sale, it is known as a judicial foreclosure. The lender will automatically win the lawsuit if you do not respond with a written response. If you opt to fight the foreclosure lawsuit, the evidence will be reviewed by the court, and the winner will be determined. If the lender prevails, the judge will issue a judgment and order the sale of your home at auction.

Nonjudicial Foreclosures: What They Are and How They Work
If the lender opts for a nonjudicial foreclosure, it must follow the state legislation' out-of-court processes. The lender can then sell the house at a foreclosure auction. The nonjudicial approach is preferred by most lenders since it is faster and less expensive than going to court.

Intent to Accelerate and Notice of Default
Before a notice of sale can be given, Texas law requires the servicer to provide you (the borrower) a notice of default and intent to accelerate by certified mail that gives you at least 20 days to remedy the problem. This obligation can be met by sending a 30-day breach notice in accordance with the rules of the deed of trust. 

The notice must mention the amount due and the due date and be mailed to the borrower's last known address.

Notification of Sale
The servicer then delivers a notice of sale to each borrower required to pay the debt by certified mail when the cure period has elapsed and at least 21 days before the foreclosure auction. The following information will be included in the notice of sale:

-placed on the front door of the courthouse in the county where the property is located, and filed with the county clerk in the county where the property is located.
-The notice of sale must specify the sale's date, time, and location, as well as a warning to military servicemembers that they should inform the notice's sender of their military status.

The Foreclosure Auction
The first Tuesday of each month, between 10:00 a.m. and 4:00 p.m., the county courts holds foreclosure sales. The sale must start at the time specified in the notice of sale, but no later than three hours after that time. (Texas Proposition Code Ann. 51.002).

The lender normally makes a credit bid during the auction. The lender has the option of bidding up to the whole amount owing, including fees and charges, or bidding less. When the lender is the highest bidder at the auction but bids less than the entire amount, it can get a deficiency judgment (see below) against the borrower in various states, including Texas. The property is referred to as "Real Estate Owned" if the lender is the highest bidder (REO).

However, if a buyer, say a third party, is the highest bidder and offers more than you owe, and the sale results in excess proceeds—that is, money above and beyond what's required to pay off all the liens on your property—you're entitled to the extra cash.