The foreclosure process in Texas includes tight due dates and particular actions. To avoid foreclosure, talk to the lending institution about payment plans, short-term 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 process?
- Can bankruptcy prevent foreclosure?
- Can I refinance or offer my home to avoid foreclosure?
- Can I be sued for a shortage?
- Can I remain in my home throughout foreclosure?
- Additional Resources

When can a loan provider start foreclosure?

Most loans from a bank should be 120 days overdue before any foreclosure activity begins. However, smaller lenders can in some cases begin foreclosure even if you are only one day late.

The lender is just needed to send you 2 notices before a foreclosure sale.

How can I avoid foreclosure?

Talk with your lender about a payment strategy, a temporary forbearance, or a loan modification. Pay what you can. If your payments are not accepted, conserve them till you can pay completely. For totally free foreclosure avoidance therapy, call the HOPE ™ Hotline at 888-995-HOPE (4673) or see 995Hope. The earlier you get support, the more rights and choices you will have.

What is loss mitigation?

Loss mitigation refers to ways to avoid foreclosure. If you're behind in payments, ask your lending institution for a loss mitigation application packet.

For the majority of servicers, if your application is total and received at least 37 days before a scheduled sale, the lender should stop all foreclosure activities. If your lender starts foreclosure after you timely sent your total application, you have a right to submit a fit to stop the sale.

You can likewise file a grievance with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Grievance. Keep a copy of your application, accessories, and evidence of shipment (such as a fax verification page or tracking number) to show receipt by your loan provider. Your lending institution must likewise send you a letter informing you whether your application is total.

Consumer laws, regulations, policies, and guidance are altering quickly in 2025. Double-check any federal consumer-related details with official federal government sources, bearing in mind that those sources themselves might alter rapidly. Speak to a lawyer for the most current details.

What is the foreclosure procedure?

In Texas, foreclosure is usually a three-step process.

( Exception: If you have a home equity loan, home equity credit line, a tax lien transfer loan, or owe evaluations to a homeowner's association, a court order is typically needed before your residential or commercial property can be posted for sale. In some circumstances, an order is likewise required to foreclose on a reverse mortgage. A suit should be filed if a federal government entity is trying to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, and so on).

Notice of Default (Demand Letter). By law, loan providers and servicers are required to send a composed notice permitting you 20 days to "treat" (pay completely the quantity owed) to bring the defaulted loan current. Some loans increase this period to 1 month (most FHA, VA and home equity loans).

Notice of Sale Filed, Posted, and Mailed. Next, the law requires a minimum of 21 days' written notice of the date the foreclosure sale (auction) is to happen. The 21 days start from the date the notification is sent by mail, not the date you receive it. Failing to gather your licensed mail will not stop or revoke the foreclosure sale. The foreclosure notice is also posted at the court house and filed with the county clerk.

Foreclosure Sale. Foreclosure sales are held at the county courthouse on the very first Tuesday of every month. Anyone might 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 loan provider, or for nonpayment of house owner's association costs. There are time limits involved, and in some cases, you must pay a redemption charge.

Can bankruptcy avoid foreclosure?

Declare bankruptcy will delay foreclosure but will not erase your lien or allow you to remain in the home without making payments. Chapter 13 is a reorganization in which specific debts are paid back gradually, and the home can be saved. Chapter 7 is a liquidation and might postpone a foreclosure, but normally, it will not enable you to keep your house if you lag on payments.

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

If you are behind in payments, refinancing is typically not a choice. You can offer if the sale earnings would pay off the mortgage and the cost of the sale.

Can I be taken legal action against for a shortage?

Lenders seldom sue for a shortage since of the time and expenditure included. If you are being demanded a deficiency, bankruptcy may be a good alternative for you.

Can I remain in my home throughout foreclosure?

You do not need to vacate on the sale date. If you are still residing in the home after a foreclosure, the brand-new owner will have to evict you. You'll get a notice to leave (usually offering three days' notice) before an expulsion is submitted. Some lending institutions will pay moving costs in order to avoid the time and cost of an expulsion case (called "cash for keys").

Lone Star Legal Aid's Get Help If You Can't Pay Your Mortgage tool can help you discover what steps you may take if dealing with foreclosure.

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