Note Foreclosure procedures may be impacted by the COVID-19 pandemic. Please see the Homeowners page on the COVID-19 & Texas Law research guide for current information related to COVID-19 and foreclosure.
In non-judicial and expedited foreclosures, the homeowner will be sent a notice letting them know the loan or obligation is in default. This notice is often referred to as a "Notice of Default."
In a judicial foreclosure, the lienholder will file a petition with the district or county court (depending on how much money is involved) and the homeowner would then be served with the paperwork, usually by a process server or county constable.
In most cases involving a home loan, federal regulations state the foreclosure action cannot begin until the loan is over 120 days delinquent.
In a nonjudicial foreclosure, Texas law gives the homeowner the right to reinstate their loan by paying the amount that was past due, not the total loan amount, within 20 days after receiving the notice of default. It's also important to check the loan documents, as they may provide additional time in which to reinstate the loan.
Once the homeowner has been notified, lienholders who qualify may then file an Application For Expedited Order with the court if they would like to proceed with an expedited foreclosure. If granted, the lienholder may then proceed with the sale of the property without the need for a judgment from the court, which is required in a judicial foreclosure.
In a non-judicial foreclosure, after the 20-day "right to reinstate" period has expired and at least 21 days before the sale, the servicer must provider the borrower with a Notice of Sale, letting them know the date and earliest time of the sale. These notices can also be called “Notice of Trustee’s Sale” or “Notice of Substitute Trustee’s Sale." This notice must also be posted on the courthouse door and filed with the county clerk.
In a judicial foreclosure, once the court has issued their judgment granting the foreclosure, the clerk of the court will prepare an Order of Sale directing the sheriff or constable to sell the property at auction.
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