 Texas Mortgage Loan Modification Guidelines
When you develop a definite plan of action with well-timed, well-informed
steps, you can stop the foreclosure process and save your home. We have
outlined the foreclosure process for the state of Texas.
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes, non-judicial. foreclosure using
the power of sale clause in a deed of trust
Preliminary Notices
Twenty-Day Demand Letter
The lender must mail a residential borrower a demand letter giving the
borrower 20 days to come up with all the missed payments before proceeding
with a foreclosure or sending the 21-day notice.
Twenty-One-Day Foreclosure Notice
The trustee must send a foreclosure notice stating the date, place and
earliest
Method of Giving Notice
Advertising: Texas does not require preliminary advertising of the foreclosure
in a newspaper.
Posting
Texas requires a foreclosure notice to be posted at the county courthouse
door 21 days before foreclosure.
Recording/Filing
Texas requires a foreclosure notice to be filed with the county clerk
21 days before foreclosure.
Mailing
A foreclosure notice must be mailed to the borrower at the last known
address as shown in the records of the lender 21 days before foreclosure.
Sale Procedures
The foreclosure sale must take place on the first Tuesday of any month,
even if it is a holiday such as the Fourth of July or New Year's, but only
after the proper preliminary notices have been given. The sale is on the
courthouse steps by auction to the highest bidder for cash. Lenders, however,
can bid by canceling out the balance due on the note, or some part of it.
There is no organization to the sales. The trustee named in the deed of
trust simply shows up and calls out the property for sale. The trustee
or a lender representative then bids for the lender. Investors must find
the trustee in a noisy crowd to bid against the lender. The title is transferred
by means of a trustee's deed.
Redemption
There is not right of redemption in Texas.
Deficiency
Texas now limits deficiency judgments to the difference between fair market
value and the balance owed on the loan, although the borrower may have
to give evidence about the market value to be sure the deficiency is kept
to a minimum.
Unusual Features
Texas is a very simple state in which to foreclose.
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