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The foreclosure process in Texas involves tight deadlines and particular actions. To prevent foreclosure, talk to the lender about payment plans, temporary forbearances, or loan adjustments.

Page Sections

- When can a lender start foreclosure?

How can I avoid foreclosure?
What is loss mitigation?
What is the foreclosure process?
Can bankruptcy prevent foreclosure?
Can I re-finance or sell my home to prevent 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 must be 120 days overdue before any foreclosure activity begins. However, smaller sized lenders can often start foreclosure even if you are just one day late.

The lending institution is only required to send you two notifications before a foreclosure sale.

How can I prevent foreclosure?

Talk with your lender about a payment strategy, a momentary forbearance, or a loan adjustment. Pay what you can. If your payments are declined, conserve them till you can pay in complete. Totally free foreclosure prevention counseling, contact the HOPE ™ Hotline at 888-995-HOPE (4673) or visit 995Hope. The earlier you make an application for help, the more rights and options you will have.

What is loss mitigation?

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

For a lot of servicers, if your application is complete and gotten a minimum of 37 days before a scheduled sale, the loan provider must stop all foreclosure activities. If your lender starts foreclosure after you prompt sent your complete application, you have a right to submit a match to stop the sale.

You can also submit a complaint 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 delivery (such as a fax confirmation page or tracking number) to show receipt by your lender. Your loan provider must also send you a letter telling you whether your application is complete.

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

What is the foreclosure procedure?

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

( Exception: If you have a home equity loan, home equity line of credit, a tax lien transfer loan, or owe assessments to a homeowner's association, a court order is generally required before your residential or commercial property can be published for sale. In some circumstances, an order is likewise needed to foreclose on a reverse mortgage. A suit must be submitted if a federal government entity is trying to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, etc).
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Notice of Default (Demand Letter). By law, lending institutions and servicers are needed to send a composed notice permitting you 20 days to "treat" (pay in full the amount owed) to bring the defaulted loan current. Some loans increase this period to 30 days (most FHA, VA and home equity loans).

Notice of Sale Filed, Posted, and Mailed. Next, the law needs a minimum of 21 days' written notice of the date the foreclosure sale (auction) is to take location. The 21 days begin from the date the notification is sent by mail, not the date you get it. Failing to collect your licensed mail will not stop or invalidate the foreclosure sale. The foreclosure notification is likewise published at the court house and submitted with the county clerk.

Foreclosure Sale. Foreclosure sales are held at the county courthouse on the first Tuesday of each month. Anyone might bid. After the auction, you do not have a right to purchase back your residential or commercial property from the brand-new owner unless it is being offered by a government entity, a tax loan provider, or for nonpayment of property owner's association fees. There are time frame involved, and sometimes, you need to pay a redemption cost.

Can bankruptcy prevent foreclosure?

Declare bankruptcy will delay foreclosure but will not wipe out your lien or allow you to remain in the home without paying. Chapter 13 is a reorganization in which particular debts are repaid gradually, and the home can be saved. Chapter 7 is a liquidation and might delay a foreclosure, but normally, it will not allow you to keep your home if you are behind on payments.

Can I refinance or sell my home to avoid foreclosure?

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

Can I be sued for a shortage?

Lenders rarely demand a shortage since of the time and cost involved. If you are being demanded a shortage, personal bankruptcy may be an excellent option for you.

Can I remain in my home during foreclosure?

You do not have to move out on the sale date. If you are still living in the home after a foreclosure, the new owner will need to evict you. You'll get a to vacate (usually giving 3 days' notification) before an expulsion is submitted. Some lending institutions will pay moving costs in order to avoid 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 actions you might take if dealing with foreclosure.

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