The foreclosure process in Texas includes tight due dates and particular actions. To prevent foreclosure, speak with the lending institution about payment strategies, temporary forbearances, or loan modifications.

Page Sections

- When can a lender start foreclosure?
- How can I avoid foreclosure?
- What is loss mitigation?
- What is the foreclosure procedure?
- Can personal bankruptcy prevent foreclosure?
- Can I refinance or offer my home to prevent foreclosure?
- Can I be taken legal action against for a deficiency?
- Can I remain in my home during foreclosure?
- Additional Resources

When can a lending institution start foreclosure?

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

The lender is only needed to send you two notices before a foreclosure sale.

How can I avoid foreclosure?

Talk with your lending institution about a payment strategy, a short-lived forbearance, or a loan adjustment. Pay what you can. If your payments are declined, save them up until you can pay completely. For free foreclosure prevention therapy, get in touch with the HOPE ™ Hotline at 888-995-HOPE (4673) or go to 995Hope. The earlier you apply for help, the more rights and choices you will have.

What is loss mitigation?

Loss mitigation describes methods to avoid foreclosure. If you're behind in payments, ask your loan provider for a loss mitigation application packet.

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

You can also file a grievance with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Grievance. Keep a copy of your application, attachments, and evidence of shipment (such as a fax confirmation page or tracking number) to show invoice by your lender. Your lending institution needs to also send you a letter informing you whether your application is total.

Consumer laws, policies, policies, and guidance are altering quickly in 2025. Double-check any federal consumer-related details with main government sources, keeping in mind that those sources themselves may change rapidly. Speak to an attorney for the current details.

What is the foreclosure process?

In Texas, foreclosure is typically a three-step procedure.

( Exception: If you have a home equity loan, home equity credit line, a tax lien transfer loan, or owe assessments to a homeowner's association, a court order is usually needed before your residential or commercial property can be posted for sale. In some instances, an order is likewise required to foreclose on a reverse mortgage. A claim should be filed if a federal government entity is attempting 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, lenders and servicers are needed to send out a written notification allowing you 20 days to "cure" (pay completely the amount owed) to bring the defaulted loan current. Some loans increase this duration to one month (most FHA, VA and home equity loans).

Notice of Sale Filed, Posted, and Mailed. Next, the law requires at least 21 days' written notice of the date the foreclosure sale (auction) is to take location. The 21 days start from the date the notification is mailed, not the date you get it. Failing to collect your qualified mail will not stop or revoke the foreclosure sale. The foreclosure notice is also published at the courthouse and submitted with the county clerk.

Foreclosure Sale. Foreclosure sales are held at the county court house on the first Tuesday of each month. Anyone might bid. After the auction, you do not have a right to buy back your residential or commercial property from the brand-new owner unless it is being sold by a government entity, a tax lending institution, or for nonpayment of homeowner's association fees. There are time frame involved, and in some cases, you must pay a redemption fee.

Can personal bankruptcy prevent foreclosure?

Filing for bankruptcy will postpone foreclosure but will not eliminate your lien or allow you to stay in the home without making payments. Chapter 13 is a reorganization in which particular financial obligations are paid back over time, and the home can be conserved. Chapter 7 is a liquidation and might postpone a foreclosure, however generally, it will not allow you to keep your home if you lag on payments.

Can I refinance or sell my home to avoid foreclosure?

If you are behind in payments, refinancing is typically not an alternative. You can sell if the sale profits would pay off the mortgage and the cost of the sale.

Can I be demanded a deficiency?

Lenders rarely demand a deficiency since of the time and cost included. If you are being taken legal action against for a shortage, personal bankruptcy may be a good choice for you.

Can I remain in my home throughout foreclosure?

You do not need to vacate on the sale date. If you are still living in the home after a foreclosure, the brand-new owner will have to evict you. You'll get a notification to abandon (normally giving three days' notification) before an eviction is filed. Some lenders will pay moving expenses in order to prevent the time and cost of an eviction case (called "money for keys").

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

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