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 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, 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 .

Texas foreclosure manual [electronic resource]
This State Bar of Texas manual covers foreclosure laws and procedures in Texas including debt collection, secured loans, bid evaluation, alternatives to foreclosure, and the specifics of foreclosure: notice of sale, conducting the sale, post-sale considerations, and penalties. Includes forms, foreclosure sale sites, and further Internet resources for all Texas counties.
Texas real estate guide [electronic resource]
This multi-volume set of e-books provides comprehensive coverage of real property law, transactions, and litigation. Along with drafting guides and forms, it includes discussions of the law with citations to statutes, case law, regulations, and court rules.

Volume 1, Ch. 8 discusses nonjudicial foreclosures. Volume 4, Ch. 53 discusses real property security interests and Ch. 70 discusses property tax foreclosures. Volume 5, Ch. 100, §103.06 discusses property owners' association foreclosures.

Home foreclosures : including reverse mortgages, tax liens, condominium liens, land installment sales, and seizure of manufactured homes [electronic resource]
With a foreclosure crisis looming, attorneys and homeowners alike will benefit from the straightforward information and advice this volume offers about foreclosure procedures and defenses.
The foreclosure survival guide : keep your house or walk away with money in your pocket [electronic resource]
"If you're one of the millions Americans who are having trouble making your mortgage payments or are already in jeopardy of foreclosure, this guide will give you the practical information you need, including: the ins and outs of foreclosure; how to decide if you should try to keep your house; federal programs to help you avoid foreclosure; alternatives to foreclosure, such as short sales and deeds in lieu; delaying or avoiding foreclosure with bankruptcy; and avoiding foreclosure scams." - publisher's description
Real estate finance law / [electronic resource]
"This treatise provides current, expert coverage on the law of mortgages, including the mortgagor-mortgagee relationship prior to foreclosure; mortgage substitutes; transfers by the mortgagor; transfers by the mortgagee; payment and prepayment; the foreclosure process; deficiency judgments and anti-deficiency regulation; priority issues; governmental intervention in the mortgage market; and financing real estate construction. " - publisher's description
Real estate finance in a nutshell / [electronic resource]
This nutshell provides a quick overview of real estate finance law and touches on the mortgage market, real estate financing devices, and the underlying obligation as well as rights and obligations after default and before foreclosure.