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.