Texas Foreclosure Process and Laws (#1) · Issues · Leta Tranter / pronorte

Texas Foreclosure Process and Laws

Navigating the Texas foreclosure procedure can feel frustrating when you're fretted about losing your home. But loan providers have to follow federal and Texas foreclosure laws, and these laws include important foreclosure notification requirements developed to offer you fair warning before they take any action or sell your home at a foreclosure sale. If you've gotten a foreclosure notification or are just concerned about what happens if you fall behind on your mortgage payments, you must discover about your rights and the actions you can take to stop a foreclosure.

This guide breaks down what occurs during the Texas foreclosure procedure, describes what each notification implies, and describes your choices to avoid foreclosure. With this knowledge, you can make clever, confident choices for your home and your household. You'll also be able to take advantage of your scenario and, ideally, exercise a method to conserve your home or a minimum of make it through the procedure with as little anxiety as possible.

What Are My Rights During Foreclosure in Texas?
When Can a Foreclosure Start in Texas?
What Kinds of Foreclosure Are Available in Texas?
For How Long Does Foreclosure Take in Texas?
Texas Foreclosure Timeline and Steps
How to Stop Foreclosure in Texas
Can I Get My House Back After a Texas Foreclosure?
Are Deficiency Judgments Allowed in Texas?
Texas Foreclosure Process for Home Equity Loans Is Different
Get More Foreclosure Help and Information
What Are My Rights During Foreclosure in Texas?

Under federal law, the servicer usually can't formally start a foreclosure till you're more than 120 days unpaid on payments.

Before the foreclosure crisis, federal and state laws regulating mortgage servicers and foreclosure procedures were relatively limited and tended to favor foreclosing lending institutions. However, federal and state laws now heavily manage loan servicing and foreclosure procedures. The majority of the laws offer defenses to borrowers. Servicers normally have to provide debtors with loss mitigation opportunities, represent each foreclosure step, and strictly comply with foreclosure laws.

Also, the majority of people who take out a loan to purchase a domestic home in Texas sign a promissory note and a deed of trust. These files provide homeowners contractual rights, such as the right to a preforeclosure notice called a "breach letter."

In a Texas foreclosure, you likewise can get particular foreclosure notifications throughout the process, get existing on the loan to stop the foreclosure sale, get unique protections if you're in the military, and get any excess money after a foreclosure sale, to name a few things.

When Can a Foreclosure Start in Texas?

Under federal law, the servicer usually can't officially start a foreclosure till you're more than 120 days overdue on payments, subject to a couple of exceptions. (12 C.F.R. § 1024.41 (2025 ).) This 120-day preforeclosure duration offers most homeowners lots of time to request loss mitigation with their loan servicer.

What Types of Foreclosure Are Available in Texas?

If you default on your mortgage payments in Texas, the loan provider might foreclose using a judicial or nonjudicial technique.

How Judicial Foreclosures Work

A begins when the lender files a lawsuit asking a court for an order enabling a foreclosure sale. If you do not react with a composed answer, the lender will immediately win the case. But if you pick to safeguard the foreclosure lawsuit, the court will review the proof and figure out the winner. If the lending institution wins, the judge will enter a judgment and buy your home cost auction.

How Nonjudicial Foreclosures Work

If the lending institution picks a nonjudicial foreclosure, it must finish the out-of-court treatments described in the state statutes. After doing so, the lending institution can offer the home at a foreclosure sale.

Most lending institutions decide for the nonjudicial procedure since it's quicker and cheaper than prosecuting the matter in court.

For How Long Does Foreclosure Take in Texas?

The nonjudicial foreclosure process, from the Notice of Default and Intent to Accelerate (see listed below) to the foreclosure auction, can take as low as 41 to around 90 days. However, including the 120-day preforeclosure delinquency duration, the whole process might take around six or seven months in total, though it can be much shorter in many cases.

Texas Foreclosure Timeline and Steps

Again, most domestic foreclosures in Texas are nonjudicial. Here's how the procedure works.

Notice of Default and Intent to Accelerate in a Texas Foreclosure

Texas law needs the servicer to send you (the debtor) a notification of default and intent to accelerate by qualified mail that offers a minimum of 20 days to treat the default before a notice of sale can be offered. The 30-day breach letter sent pursuant to the terms of the deed of trust can please this requirement. (Tex. Prop. Code § 51.002 (d)

( 2025).) The notice is sent to the borrower's last recognized address and must consist of the amount due and the date it has actually to be paid.

Under Texas law, the statute of limitations for a judicial or nonjudicial foreclosure is 4 years, beginning the day after the reason for action accrues. (Tex. Civ. Prac. & Rem. Code § 16.035 (a), (b),( d)( 2025 ).) Generally, the accrual date is the loan's maturity date. But if the mortgage loan consists of a velocity provision, the statute of constraints begins at the time of velocity. (Tex. Civ. Prac. & Rem. Code § 16.035 (e )( 2025 ); Holy Cross Church of God in Christ v. Wolf, 44 S.W. 3d 562, 566, Tex. 2001). To accelerate a mortgage loan, the loan provider should give the borrower clear notifications of the intent to speed up and the real acceleration. (See Ogden v. Gibralter Sav. Ass' n, 640 S.W. 2d 232 (1982 ).) The four-year statute of restrictions starts when these notices are sent.

Notice of Sale in a Texas Foreclosure

After the cure duration has expired and a minimum of 21 days before the foreclosure sale, the servicer sends a notice of sale via qualified mail to each debtor bound to pay the financial obligation. The notice of sale will likewise be:

- published at the court house door in the county where the residential or commercial property is located

submitted with the county clerk in the county where the residential or commercial property lies, and
published online. (The county needs to also publish the date, time, and place of the sale on the exact same site page on which the notification is posted.) (Tex. Prop. Code § 51.002 (b ),(

f-1)(2025).)The notice of sale should consist of the date, time, and place of the sale, along with a disclosure geared towards military servicemembers that they must inform the sender of the notification about their military status. (Tex. Prop. Code § 51.002 (i) (2025).)The federal Servicemembers Civil Relief Act offers legal defenses to military personnel who might lose their home to foreclosure.

Foreclosure sales are typically hung on the first Tuesday of each month in between 10:00 a.m. and 4:00 p.m. at the county courthouse. The sale should begin at the time mentioned in the notification of sale but no later on than three hours after the time set up on the notice of sale. (Tex. Prop. Code § 51.002 (a)

( 2025 ).)A couple of potential methods to stop a foreclosure include renewing the loan, working out a loss mitigation option, redeeming the residential or commercial property before the sale, or filing for insolvency.

At the sale, the lender typically makes a credit bid. The lending institution can bid approximately the overall quantity owed, including fees and costs, or it might bid less. In some states, including Texas, when the lending institution is the high bidder at the sale however quotes less than the total debt, it can get a shortage judgment (see below) versus the debtor. If the loan provider is the highest bidder, the residential or commercial property ends up being "property owned" (REO).

But if a bidder, say a 3rd party, is the greatest bidder and offers more than you owe, and the sale results in excess proceeds-that is, cash over and above what's needed to settle all the liens on your property-you're entitled to that surplus cash.

Eviction

If you stay in the home after a foreclosure sale, the buyer of the residential or commercial property is required to provide you with a "notification to vacate" before submitting an expulsion case. In Texas, this type of case is described as a "forcible detainer" action.

In this short article, you'll find details on foreclosure laws in Texas, with citations to statutes so you can discover more. Statutes change, so examining them is always a good concept. How courts and agencies interpret and apply laws can change. And some guidelines can even vary within a state. These are simply a few of the reasons to consider seeking advice from a legal representative if you're dealing with a foreclosure.

How to Stop Foreclosure in Texas

A couple of potential ways to stop a foreclosure and keep your home consist of restoring the loan, exercising a loss mitigation choice (such as a loan modification), redeeming the residential or commercial property before the sale, or declare personal bankruptcy. Alternatively, you might be able to exercise a brief sale or deed in lieu of foreclosure and prevent a foreclosure. But you'll need to offer up your home with either of these alternatives.

Reinstating the Loan

Texas law permits the debtor to obstruct a nonjudicial foreclosure sale by "restoring" the loan (paying the past due quantity) within 20 days after the loan provider serves the notice of default by mail. (Tex. Prop. Code § 51.002(d) (2025 ).)

Also, most deeds of trust provide additional time to restore. Check your loan files to discover out if you have more time to complete a reinstatement.

Declare Bankruptcy

If you're dealing with a foreclosure, filing for personal bankruptcy may assist. If a foreclosure sale is arranged to happen in the next day or so, the very best method to stop the sale instantly is by applying for bankruptcy. Once you apply for personal bankruptcy, something called an "automatic stay" goes into result. The stay works as an injunction, forbiding the lender from foreclosing on your home or attempting to collect its debt, at least momentarily.

Oftentimes, applying for Chapter 7 personal bankruptcy can delay the foreclosure by a matter of months. Or, if you wish to conserve your home, filing for Chapter 13 bankruptcy might be the response. To find out about the choices readily available, speak to a regional insolvency attorney.

Can I Get My House Back After a Texas Foreclosure?

One way to stop a foreclosure is by "redeeming" the residential or commercial property. To redeem, you must pay off the full loan amount before the foreclosure sale. To do this, you 'd need to get your hands on a great deal of cash relatively quickly. So, very few house owners have the ability to complete a redemption before losing their home in a foreclosure sale.

Some states likewise provide foreclosed borrowers a redemption period after the foreclosure sale, during which they can buy back the home. However, Texas law does not offer borrowers a statutory right of redemption after a foreclosure. Once your Texas home has been foreclosed, you can't redeem it to get it back.

Are Deficiency Judgments Allowed in Texas?

In a foreclosure, the borrower's overall mortgage financial obligation frequently surpasses the foreclosure list price. The difference in between the total debt and the sale price is called a "shortage." For instance, say the total financial obligation owed is $300,000, however the home offers for $250,000 at the foreclosure sale. The shortage is $50,000.

In some states, the loan provider can look for a personal judgment versus the debtor to recuperate the shortage. Generally, once the loan provider gets a deficiency judgment, the lender may collect this amount-in our example, $50,000-from the customer.

Texas foreclosure laws permit deficiency judgments.

Texas Deficiency Judgment Laws

In Texas, the loan provider might get a deficiency judgment after a nonjudicial foreclosure. The lending institution needs to file a suit for a shortage judgment within 2 years after the foreclosure sale. (Tex. Prop. Code § 51.003
( a) ). However, Texas state law permits the borrower to get credit for the residential or commercial property's fair market price. So, the customer is entitled to a balanced out in the deficiency amount if the residential or commercial property's reasonable market price is greater than the foreclosure sale rate. (Tex. Prop. Code § 51.003( b), (c )( 2025)
.) Texas Foreclosure Process for Home Equity Loans Is Different

In Texas, how a foreclosure will work depends upon the type of mortgage that's being foreclosed. While there are a number of different types of loans, the most typical are:

- purchase cash loans (a "purchase money loan" is a loan secured to purchase the residential or commercial property).
purchase cash 2nd loans, and. equity loans, like home equity loans and home equity credit lines.

Again, most foreclosures in Texas including purchase cash loans are nonjudicial. But equity loan foreclosures are a little various. Under Texas law, the loan provider must utilize a quasi-judicial procedure to foreclose this sort of loan.

In this process, the lending institution should get a court order approving the foreclosure before performing a nonjudicial foreclosure. Also, Texas law does not permit deficiency judgments following the foreclosure of a home equity loan.

Home Equity Loan Foreclosures Involve an Additional Step: The Lender Must Litigate

Foreclosing an equity loan involves another action that falls in between sending a breach letter and notice of sale: The lending institution must submit an application in court requesting an order permitting the foreclosure. (Texas Rule of Civil Procedure 735, 736; Texas Constitution, Article XVI, § 50 [a] [6] [D] (2025 ).)

Responding to the foreclosure. The application needs to be served to you by mail, and you get 38 days from the date of mailing to file a response. If you choose to respond, your reaction should remain in the appropriate format and may be in the form of a basic denial, however need to affirmatively plead:

- why you believe you didn't sign the specified loan agreement file.
why you're not obliged to make payments.
that the variety of months of the supposed default (that is, the variety of months the lending institution states you're behind in payments) is incorrect, or that the reinstatement or pay off amounts the lending institution supplied are materially inaccurate.
that any file connected to the application is not a true and right copy of the initial, or.
that you made the payments (and you'll have to supply proof). (Texas Rule of Civil Procedure 736.5 (2025 ).)

You can't raise any independent claims for relief. To eliminate the foreclosure on other premises, you'll have to submit your own suit.

What occurs if you file an action. If you file a reaction to the application, the court sets a hearing that, like the response, is restricted in scope. The only issue in this type of case is whether the lender can get an order permitting it to continue with foreclosure under the law and the terms of the loan agreement. (See In re One West Bank, FSB, 430 S.W. 3d 573 (Tex.App. 2014)).

If the court grants the lender's application at the hearing, the foreclosure will proceed. The loan provider will then send you a foreclosure sale notification.

Foreclosure Sale

Again, foreclosure sales are usually held the first Tuesday of each month in between 10:00 a.m. and 4:00 p.m. at the county court house. The sale must start at the time mentioned in the notification of sale, however no behind 3 hours after the time scheduled on the notice of sale. (Tex. Prop. Code § 51.002 (2025 ).)

Deficiency Judgment Following the Home Equity Loan Foreclosure

Texas law doesn't allow the loan provider to get a shortage judgment versus you after foreclosing an equity loan. (Texas Constitution, Article XVI, § 50 [a] [6] [C] (2025 ).)

Get More Foreclosure Help and Information

To find out more on federal mortgage servicing laws and foreclosure relief choices, go to the Consumer Financial Protection Bureau (CFPB) site. The Texas Department of Housing and Community Affairs likewise supplies details about foreclosures, including foreclosure FAQs, for Texas house owners. In addition, the Texas State Law Library has helpful details about the Texas foreclosure process.

If you have concerns about Texas's foreclosure procedure or want to learn about potential defenses to a foreclosure and potentially combat the foreclosure in court, consider talking with a foreclosure attorney. It's also a good idea to talk with a HUD-approved housing therapist about different loss mitigation alternatives.

Navigating the Texas foreclosure procedure can feel frustrating when you're fretted about losing your home. But loan providers have to follow federal and Texas foreclosure laws, and these laws include important foreclosure notification requirements developed to offer you fair warning before they take any action or sell your home at a foreclosure sale. If you've gotten a foreclosure notification or are just concerned about what happens if you fall behind on your mortgage payments, you must discover about your rights and the actions you can take to stop a foreclosure. 
 This guide breaks down what occurs during the Texas foreclosure procedure, describes what each notification implies, and describes your choices to avoid foreclosure. With this knowledge, you can make clever, confident choices for your home and your [household](https://mohali.homes). You'll also be able to take advantage of your scenario and, ideally, exercise a method to conserve your home or a minimum of make it through the procedure with as little anxiety as possible. 
 What Are My Rights During Foreclosure in Texas?
 When Can a Foreclosure Start in Texas?
 What Kinds of Foreclosure Are Available in Texas?
 For How Long Does Foreclosure Take in Texas?
 Texas Foreclosure Timeline and Steps
 How to Stop Foreclosure in Texas
 Can I Get My House Back After a [Texas Foreclosure](https://inmocosta.com)?
 Are Deficiency Judgments Allowed in Texas?
 Texas Foreclosure Process for Home Equity Loans Is Different
 Get More Foreclosure Help and Information
 
What Are My Rights During Foreclosure in Texas? 
 Under federal law, the servicer usually can't formally start a foreclosure till you're more than 120 days unpaid on payments. 
 Before the foreclosure crisis, [federal](https://www.part-realtor.ae) and state laws regulating mortgage servicers and foreclosure procedures were relatively limited and tended to favor foreclosing lending institutions. However, federal and state laws now heavily manage loan servicing and foreclosure procedures. The majority of the laws offer defenses to borrowers. Servicers normally have to provide debtors with loss mitigation opportunities, represent each foreclosure step, and strictly comply with foreclosure laws. 
 Also, the majority of people who take out a loan to purchase a domestic home in Texas sign a promissory note and a deed of trust. These files provide homeowners contractual rights, such as the right to a preforeclosure notice called a "breach letter." 
 In a Texas foreclosure, you likewise can get particular foreclosure notifications throughout the process, get existing on the loan to stop the foreclosure sale, get unique protections if you're in the military, and get any excess money after a foreclosure sale, to name a few things. 
 When Can a Foreclosure Start in Texas? 
 Under federal law, the servicer usually can't officially start a foreclosure till you're more than 120 days overdue on payments, subject to a couple of [exceptions](https://mercurerealestate.ae). (12 C.F.R. § 1024.41 (2025 ).) This 120-day preforeclosure duration offers most homeowners lots of time to request loss mitigation with their loan servicer. 
 What Types of Foreclosure Are Available in Texas? 
 If you default on your mortgage payments in Texas, the loan provider might foreclose using a judicial or nonjudicial technique. 
 How Judicial Foreclosures Work 
 A begins when the lender files a lawsuit asking a court for an order enabling a foreclosure sale. If you do not react with a composed answer, the lender will immediately win the case. But if you pick to safeguard the foreclosure lawsuit, the court will review the proof and figure out the winner. If the lending institution wins, the judge will enter a judgment and buy your home cost auction. 
 How Nonjudicial Foreclosures Work 
 If the lending institution picks a nonjudicial foreclosure, it must finish the out-of-court treatments described in the state statutes. After doing so, the lending institution can offer the home at a foreclosure sale. 
 Most lending institutions decide for the nonjudicial procedure since it's quicker and cheaper than prosecuting the matter in court. 
 For How Long Does Foreclosure Take in Texas? 
 The nonjudicial foreclosure process, from the Notice of Default and Intent to Accelerate (see listed below) to the [foreclosure](https://laculracilor.ro) auction, can take as low as 41 to around 90 days. However, including the 120-day preforeclosure delinquency duration, the whole process might take around six or seven months in total, though it can be much shorter in many cases. 
 Texas Foreclosure Timeline and Steps 
 Again, most domestic foreclosures in Texas are nonjudicial. Here's how the procedure works. 
 Notice of Default and Intent to Accelerate in a Texas Foreclosure 
 Texas law needs the servicer to send you (the debtor) a notification of default and intent to accelerate by qualified mail that offers a minimum of 20 days to treat the default before a notice of sale can be offered. The 30-day breach letter sent pursuant to the terms of the deed of trust can please this requirement. (Tex. Prop. Code § 51.002 (d) 
 ( 2025).) The notice is sent to the borrower's last recognized address and must consist of the amount due and the date it has actually to be paid. 
 Under Texas law, the statute of limitations for a judicial or nonjudicial foreclosure is 4 years, beginning the day after the reason for action accrues. (Tex. Civ. Prac. & Rem. Code § 16.035 (a), (b),( d)( 2025 ).) Generally, the accrual date is the loan's maturity date. But if the mortgage loan consists of a velocity provision, the statute of constraints begins at the time of velocity. (Tex. Civ. Prac. & Rem. Code § 16.035 (e )( 2025 ); Holy Cross Church of God in Christ v. Wolf, 44 S.W. 3d 562, 566, Tex. 2001). To accelerate a mortgage loan, the loan provider should give the borrower clear notifications of the intent to speed up and the real acceleration. (See Ogden v. Gibralter Sav. Ass' n, 640 S.W. 2d 232 (1982 ).) The four-year statute of restrictions starts when these notices are sent. 
 Notice of Sale in a Texas Foreclosure 
 After the cure duration has expired and a minimum of 21 days before the foreclosure sale, the servicer sends a notice of sale via qualified mail to each debtor bound to pay the financial obligation. The notice of sale will likewise be: 
 - published at the court house door in the county where the residential or commercial property is located
- submitted with the county clerk in the county where the residential or commercial property lies, and
- published online. (The county needs to also publish the date, time, and place of the sale on the exact same site page on which the notification is posted.) (Tex. Prop. Code § 51.002 (b ),( 
 f-1)(2025).)The notice of sale should consist of the date, time, and place of the sale, along with a disclosure geared towards military servicemembers that they must inform the sender of the notification about their military status. (Tex. Prop. Code § 51.002 (i) (2025).)The federal Servicemembers Civil Relief Act offers legal defenses to military personnel who might lose their home to foreclosure. 
 Foreclosure sales are typically hung on the first Tuesday of each month in between 10:00 a.m. and 4:00 p.m. at the county courthouse. The sale should begin at the time mentioned in the notification of sale but no later on than three hours after the time set up on the notice of sale. (Tex. Prop. Code § 51.002 (a) 
 ( 2025 ).)A couple of potential methods to stop a foreclosure include renewing the loan, working out a loss mitigation option, redeeming the residential or commercial property before the sale, or filing for insolvency. 
 At the sale, the lender typically makes a credit bid. The lending institution can bid approximately the overall quantity owed, including fees and costs, or it might bid less. In some states, including Texas, when the lending institution is the high bidder at the sale however quotes less than the total debt, it can get a shortage judgment (see below) versus the debtor. If the loan provider is the highest bidder, the residential or commercial property ends up being "property owned" (REO). 
 But if a bidder, say a 3rd party, is the greatest bidder and offers more than you owe, and the sale results in excess proceeds-that is, cash over and above what's needed to settle all the liens on your property-you're entitled to that surplus cash. 
 Eviction 
 If you stay in the home after a foreclosure sale, the buyer of the residential or commercial property is required to provide you with a "notification to vacate" before submitting an expulsion case. In Texas, this type of case is described as a "forcible detainer" action. 
 In this short article, you'll find details on foreclosure laws in Texas, with citations to statutes so you can discover more. Statutes change, so examining them is always a good concept. How courts and agencies interpret and apply laws can change. And some guidelines can even vary within a state. These are simply a few of the reasons to consider seeking advice from a legal representative if you're dealing with a foreclosure. 
 How to Stop Foreclosure in Texas 
 A couple of potential ways to stop a foreclosure and keep your home consist of restoring the loan, exercising a loss mitigation choice (such as a loan modification), redeeming the residential or commercial property before the sale, or declare personal bankruptcy. Alternatively, you might be able to [exercise](https://nyumbanirealtygroup.com) a brief sale or deed in lieu of foreclosure and prevent a foreclosure. But you'll need to offer up your home with either of these alternatives. 
 Reinstating the Loan 
 Texas law permits the debtor to obstruct a [nonjudicial foreclosure](https://testedwebsite.us) sale by "restoring" the loan (paying the past due quantity) within 20 days after the loan provider serves the notice of default by mail. (Tex. Prop. Code § 51.002(d) (2025 ).) 
 Also, most deeds of trust provide additional time to restore. Check your loan files to discover out if you have more time to complete a reinstatement. 
 Declare Bankruptcy 
 If you're dealing with a foreclosure, filing for personal bankruptcy may assist. If a foreclosure sale is arranged to happen in the next day or so, the very best method to stop the sale instantly is by applying for bankruptcy. Once you apply for personal bankruptcy, something called an "automatic stay" goes into result. The stay works as an injunction, forbiding the lender from foreclosing on your home or attempting to collect its debt, at least momentarily. 
 Oftentimes, applying for Chapter 7 personal bankruptcy can delay the foreclosure by a matter of months. Or, if you wish to conserve your home, filing for Chapter 13 bankruptcy might be the response. To find out about the choices readily available, speak to a regional insolvency attorney. 
 Can I Get My House Back After a Texas Foreclosure? 
 One way to stop a foreclosure is by "redeeming" the residential or commercial property. To redeem, you must pay off the full loan amount before the foreclosure sale. To do this, you 'd need to get your hands on a great deal of cash relatively quickly. So, very few house owners have the ability to complete a redemption before losing their home in a foreclosure sale. 
 Some states likewise provide foreclosed borrowers a redemption period after the foreclosure sale, during which they can buy back the home. However, Texas law does not offer borrowers a statutory right of redemption after a foreclosure. Once your Texas home has been foreclosed, you can't redeem it to get it back. 
 Are Deficiency Judgments Allowed in Texas? 
 In a foreclosure, the borrower's overall mortgage financial obligation frequently surpasses the foreclosure list price. The difference in between the total debt and the sale price is called a "shortage." For instance, say the total financial obligation owed is $300,000, however the home offers for $250,000 at the foreclosure sale. The shortage is $50,000. 
 In some states, the loan provider can look for a personal judgment versus the debtor to recuperate the shortage. Generally, once the [loan provider](https://goldlarimobiliaria.com.br) gets a deficiency judgment, the lender may collect this amount-in our example, $50,000-from the customer. 
 Texas foreclosure laws permit [deficiency judgments](https://smalltownstorefronts.com). 
 Texas Deficiency Judgment Laws 
 In Texas, the loan provider might get a deficiency judgment after a nonjudicial foreclosure. The lending institution needs to file a suit for a shortage judgment within 2 years after the foreclosure sale. (Tex. Prop. Code § 51.003
 ( a) ). However, Texas state law permits the borrower to get credit for the residential or commercial property's fair market price. So, the customer is entitled to a balanced out in the deficiency amount if the residential or commercial property's reasonable market price is greater than the foreclosure sale rate. (Tex. Prop. Code § 51.003( b), (c )( 2025)
 .) Texas Foreclosure Process for Home Equity Loans Is Different 
 In Texas, how a foreclosure will work depends upon the type of mortgage that's being foreclosed. While there are a number of different types of loans, the most typical are: 
 - purchase cash loans (a "purchase money loan" is a loan secured to purchase the residential or commercial property).
- purchase cash 2nd loans, and.
equity loans, like home equity loans and home equity credit lines. 
 Again, most foreclosures in Texas including purchase cash loans are nonjudicial. But equity loan foreclosures are a little various. Under Texas law, the loan provider must utilize a quasi-judicial procedure to foreclose this sort of loan. 
 In this process, the lending institution should get a court order approving the foreclosure before performing a nonjudicial foreclosure. Also, Texas law does not permit deficiency judgments following the foreclosure of a home equity loan. 
 Home Equity Loan Foreclosures Involve an Additional Step: The Lender Must Litigate 
 Foreclosing an equity loan involves another action that falls in between sending a breach letter and notice of sale: The lending institution must submit an application in court requesting an order permitting the foreclosure. (Texas Rule of Civil Procedure 735, 736; Texas Constitution, Article XVI, § 50 [a] [6] [D] (2025 ).) 
 Responding to the foreclosure. The application needs to be served to you by mail, and you get 38 days from the date of mailing to file a response. If you choose to respond, your reaction should remain in the appropriate format and may be in the form of a basic denial, however need to affirmatively plead: 
 - why you believe you didn't sign the specified loan agreement file.
- why you're not obliged to make payments.
- that the variety of months of the supposed default (that is, the variety of months the lending institution states you're behind in payments) is incorrect, or that the [reinstatement](https://alkojak.com) or pay off amounts the lending institution supplied are materially inaccurate.
- that any file connected to the application is not a true and right copy of the initial, or.
- that you made the payments (and you'll have to supply proof). (Texas Rule of Civil Procedure 736.5 (2025 ).) 
 You can't raise any independent claims for relief. To eliminate the foreclosure on other premises, you'll have to submit your own suit. 
 What occurs if you file an action. If you file a reaction to the application, the court sets a hearing that, like the response, is restricted in scope. The only issue in this type of case is whether the lender can get an order permitting it to continue with foreclosure under the law and the terms of the loan agreement. (See In re One West Bank, FSB, 430 S.W. 3d 573 (Tex.App. 2014)). 
 If the court grants the lender's application at the hearing, the foreclosure will proceed. The loan provider will then send you a foreclosure sale notification. 
 Foreclosure Sale 
 Again, foreclosure sales are usually held the first Tuesday of each month in between 10:00 a.m. and 4:00 p.m. at the county court house. The sale must start at the time mentioned in the notification of sale, however no behind 3 hours after the time scheduled on the notice of sale. (Tex. Prop. Code § 51.002 (2025 ).) 
 Deficiency Judgment Following the Home Equity Loan Foreclosure 
 Texas law doesn't allow the loan provider to get a shortage judgment versus you after foreclosing an equity loan. (Texas Constitution, Article XVI, § 50 [a] [6] [C] (2025 ).) 
 Get More Foreclosure Help and Information 
 To find out more on federal mortgage servicing laws and foreclosure relief choices, go to the Consumer Financial Protection Bureau (CFPB) site. The Texas Department of Housing and Community Affairs likewise supplies details about foreclosures, including foreclosure FAQs, for Texas house owners. In addition, the Texas State Law Library has helpful details about the Texas foreclosure process. 
 If you have concerns about Texas's foreclosure procedure or want to learn about potential defenses to a foreclosure and potentially combat the foreclosure in court, consider talking with a foreclosure attorney. It's also a good idea to talk with a HUD-approved housing therapist about different loss mitigation alternatives.