Foreclosure Fact Sheet

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 modifications.


Page Sections


- When can a lender 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 prevent foreclosure?
- Can I be sued for a deficiency?
- Can I remain in my home throughout 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 begins. However, smaller lending institutions can often begin foreclosure even if you are just one day late.


The lender is only required to send you 2 notifications before a foreclosure sale.


How can I avoid foreclosure?


Talk with your lending institution about a payment plan, a momentary forbearance, or a loan modification. Pay what you can. If your payments are not accepted, conserve them up until you can pay completely. For complimentary foreclosure avoidance counseling, get in touch with the HOPE ™ Hotline at 888-995-HOPE (4673) or visit 995Hope. The earlier you look for help, the more rights and options you will have.


What is loss mitigation?


Loss mitigation refers to 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 complete and received a minimum of 37 days before a scheduled sale, the lending institution should stop all foreclosure activities. If your loan provider begins foreclosure after you timely sent your total application, you have a right to file a match to stop the sale.


You can also submit a problem with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Grievance. Keep a copy of your application, attachments, and proof of shipment (such as a fax confirmation page or tracking number) to show receipt by your loan provider. Your loan provider needs to also send you a letter telling you whether your application is total.


Consumer laws, guidelines, policies, and guidance are altering quickly in 2025. Double-check any federal consumer-related details with main federal government sources, bearing in mind that those sources themselves might change quickly. Talk to a legal representative for the current info.


What is the foreclosure procedure?


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


( Exception: If you have a home equity loan, home equity line of credit, a tax lien transfer loan, or owe evaluations to a property owner's association, a court order is typically required before your residential or commercial property can be posted for sale. In some circumstances, an order is also needed to foreclose on a reverse mortgage. A lawsuit must be submitted if a government entity is attempting to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, etc).


Notice of Default (Demand Letter). By law, lending institutions and servicers are required to send out a written notification enabling you 20 days to "cure" (pay in full 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 notification of the date the foreclosure sale (auction) is to take location. The 21 days start from the date the notice is mailed, not the date you receive it. Failing to collect your licensed mail will not stop or revoke the foreclosure sale. The foreclosure notification is likewise posted at the courthouse and filed with the county clerk.



Foreclosure Sale. Foreclosure sales are held at the county court house on the 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 offered by a government entity, a tax lending institution, or for nonpayment of homeowner's association costs. There are time limitations included, and sometimes, you need to pay a redemption charge.



Can personal bankruptcy prevent foreclosure?


Filing for insolvency will postpone foreclosure however will not erase your lien or permit you to remain in the home without making payments. Chapter 13 is a reorganization in which certain debts are repaid with time, and the home can be saved. Chapter 7 is a liquidation and may delay a foreclosure, but typically, it will not permit you to keep your house if you lag on payments.


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


If you lag in payments, refinancing is generally not an option. You can sell if the sale earnings would settle the mortgage and the cost of the sale.


Can I be demanded a deficiency?


Lenders rarely sue for a shortage since of the time and cost involved. If you are being demanded a shortage, insolvency might be an excellent choice for you.


Can I remain in my home during foreclosure?


You do not have to leave on the sale date. If you are still living in the home after a foreclosure, the new owner will have to evict you. You'll get a notice to leave (usually offering 3 days' notice) before an eviction is filed. Some lenders will expenditures in order to prevent the time and expense of an eviction case (called "money for keys").


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


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