Texas’ foreclosure process is relatively quick and simple compared to other states. In Texas, homeowners can lose their home due to foreclosure in as little as 41 days, and because the state does not grant the right of redemption, homeowners cannot reclaim their property once foreclosure has taken place. Because you’re dealing with such a constricting timeframe, you need to act quickly. The more information you have about Texas foreclosure, the easier it will be to resolve the situation.
Here is the three-step process of foreclosure in Texas:
Step One – Notice of Default
After a period of 20 days, another 21 days must transpire before a foreclosure sale is scheduled. During this time, the lender must do three things: post a notice of foreclosure at the courthouse, file the notice at the county clerk office, and get in touch with the borrower to notify him/her regarding the details of the foreclosure sale. Under Texas law, foreclosure sales take place on the first Tuesday of every month (including holidays). Anyone is allowed to place a bid on the property.
Step Two – Notice of Sale
The trustee included in the deed of trust will then read the foreclosure on the courthouse steps. The property will be awarded to the highest bidder. Either the trustee or lender representative will then place a bid equal to or less than the amount of the debt. A bid that’s worth more than the lender’s bid will buy the property. The title of the house will then be transferred to the highest bidder by means of a trustee’s deed.
Step Three – Foreclosure Sale
Right after the foreclosure sale, the new owner has the option of filing an eviction notice in the event that the original owner is still residing in the property. Eviction notices include a court date – after which, the former property owner has five days to vacate the property or file an appeal to the judge’s ruling. After five days have passed, the former owner then has a minimum of 24 hours to vacate the property.