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 legally served with the paperwork, usually by the county sheriff or private process server.
In most cases involving a home loan, federal regulations state the foreclosure action cannot begin until the loan is over 120 days delinquent.
Texas Civil Practice and Remedies Code Section 16.035 places a 4-year statute of limitations on foreclosure actions though there are some exceptions to this law.
Federal regulation issued by the Consumer Financial Protection Bureau that states the mortgage loan obligation must be over 120 days delinquent before initiating a foreclosure action.
An article from legal self-help publisher Nolo on how soon the foreclosure process can begin and what documents you may receive from the servicer.
An article from legal self-help publisher Nolo on the federal rule that prevents most lenders from foreclosing on a property until the loan is over 120 days delinquent.
In a non-judicial foreclosure, Texas law gives homeowners the right to reinstate their loan in order to avoid a foreclosure sale. The homeowner can reinstate the loan by paying the amount that was past due, not the total loan amount.
Under Texas law, this amount must be paid within 20 days of 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.
Subsection (d) of this section governs the right to reinstate the loan within 20 days of receiving notice.
An article from legal self-help publisher Nolo that discusses the "right to reinstate" and the difference between in and paying off the loan entirely.
The right to reinstate a loan is discussed in this article from self-help legal publisher Nolo.Once the homeowner has been notified of the default, lienholders who qualify may file an "Application For Expedited Order" with the court if they would like to try and proceed with an expedited foreclosure. If granted by the court, an expedited foreclosure would allow the lienholder to 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.
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.
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.
This multi-volume set of e-books provides comprehensive coverage of real property law. 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.
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.
"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
"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
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.
