The foreclosure procedure in Texas includes tight deadlines and specific actions. To avoid foreclosure, speak to the loan provider about payment strategies, short-lived 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 insolvency avoid foreclosure?
- Can I refinance or offer my home to avoid foreclosure?
- Can I be demanded a shortage?
- Can I remain in my home during foreclosure?
- Additional Resources

When can a lending institution start foreclosure?

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

The loan provider is only required to send you two notices before a foreclosure sale.

How can I prevent foreclosure?

Talk with your lender about a payment plan, a momentary forbearance, or a loan adjustment. Pay what you can. If your payments are declined, save them till you can pay in full. Totally free foreclosure prevention therapy, contact the HOPE ™ Hotline at 888-995-HOPE (4673) or visit 995Hope. The earlier you request support, the more rights and options you will have.

What is loss mitigation?

Loss mitigation describes methods to avoid foreclosure. If you lag in payments, ask your lending institution for a loss mitigation application package.

For most servicers, if your application is total and received a minimum of 37 days before a scheduled sale, the loan provider must stop all foreclosure activities. If your loan provider starts foreclosure after you prompt submitted your complete application, you have a right to submit a fit to stop the sale.

You can also submit a grievance with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Problem. Keep a copy of your application, accessories, and proof of shipment (such as a fax confirmation page or tracking number) to prove receipt by your lending institution. Your lender should likewise send you a letter telling you whether your application is total.

Consumer laws, guidelines, policies, and guidance are altering rapidly in 2025. Double-check any federal consumer-related info with main government sources, remembering that those sources themselves might alter quickly. Talk to an attorney for the most recent info.

What is the foreclosure process?

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

( Exception: If you have a home equity loan, home equity line of credit, a tax lien transfer loan, or owe assessments to a property owner's association, a court order is generally required before your residential or commercial property can be posted for sale. In some instances, an order is also required to foreclose on a reverse mortgage. A lawsuit must be submitted if a 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, lenders and servicers are needed to send a written notification permitting you 20 days to "cure" (pay completely the amount owed) to bring the defaulted loan current. Some loans increase this duration 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 notification of the date the foreclosure sale (auction) is to occur. The 21 days begin from the date the notice is sent by mail, not the date you receive it. Failing to collect your certified mail will not stop or revoke the foreclosure sale. The foreclosure notification is likewise published at the courthouse and submitted with the county clerk.

Foreclosure Sale. Foreclosure sales are held at the county court house on the very 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 federal government entity, a tax lending institution, or for nonpayment of house owner's association costs. There are time limitations involved, and in some cases, you need to pay a redemption fee.

Can personal bankruptcy prevent foreclosure?

Declare insolvency will postpone foreclosure however will not clean out your lien or enable you to remain in the home without paying. Chapter 13 is a reorganization in which certain financial obligations are repaid over time, and the home can be saved. Chapter 7 is a liquidation and might postpone a foreclosure, but usually, it will not permit you to keep your house if you are behind on payments.

Can I refinance or sell my home to prevent foreclosure?

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

Can I be demanded a deficiency?

Lenders rarely demand a deficiency because of the time and expense included. If you are being demanded a shortage, bankruptcy may be an excellent alternative for you.

Can I remain in my home throughout foreclosure?

You do not have to move out 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 abandon (normally offering three days' notice) before an expulsion is submitted. Some loan providers will pay moving costs in order to avoid the time and expenditure of an expulsion proceeding (called "money for secrets").

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

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