| Texas Foreclosure
Procedure
Judicial Foreclosure Available: Yes Non-judicial Foreclosure Available: Yes, (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 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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