In Texas, there are three ways in which a lienholder can foreclose on a property:
A judicial foreclosure requires the lienholder to file a civil lawsuit against the homeowner. They must obtain a judgment from the court before they are allowed to sell the property. This type of foreclosure is rare in Texas.
A non-judicial foreclosure (also referred to as a "power of sale" foreclosure) allows the lienholder to sell the property without having to file a civil lawsuit against the homeowner. In order to qualify for a non-judicial foreclosure, the lienholder must have a deed of trust with a "power of sale" clause, giving them the authority to sell the property. These foreclosures are governed by Section 51.002 of the Texas Property Code as well as the contractual documents.
Judicial foreclosure is required in certain situations such as foreclosures involving home equity loans, reverse mortgages or property owners' association assessments.
However, certain lienholders can apply for what is known as an "expedited foreclosure." This is also sometimes referred to as a "quasi-judicial foreclosure." If granted by the court, this type of foreclosure allows the process to move forward similarly to a non-judicial foreclosure.
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