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Foreclosure

A legal research guide on the state and federal laws for foreclosure.

The Foreclosure Process


Note Foreclosure procedures may be impacted by the COVID-19 pandemic. Please see the Homeowners subpage on the COVID-19 and Texas Law research guide for current information related to COVID-19 and foreclosures.

The Foreclosure Process

In Texas, there are three ways in which a lienholder can foreclose on a property:

Judicial Foreclosure

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 procedure is rare in Texas. See Rule 309 of the Texas Rules of Civil Procedure [PDF] for the court rule governing judicial foreclosures.

Non-Judicial Foreclosure

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.

Expedited Foreclosure

Certain types of foreclosures are required by law to go through judicial foreclosure, such as those involving a home equity loan, reverse mortgage or an assessment lien by a property owners association. However, under Rules 735 and 736 of the Texas Rules of Civil Procedure [PDF], certain lienholders can apply for what is known as an "expedited foreclosure" (also referred to as a quasi-judicial foreclosure) which, if granted, allows the process to move forward similar to a non-judicial foreclosure. 

See the following subpages for a breakdown of each step in the foreclosure process.

E-Books from the Texas State Law Library

You can borrow the e-books below with your library account. Don't have a library account? Texas residents can register for a library account online! Learn more about how to register online.