Understanding the Foreclosure Process in TX

Understanding the foreclosure process in TX is an important part of navigating your own home foreclosure.

Before we dive in…

What is foreclosure anyway?

Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.

Foreclosure is no fun. But just know that it’s not the end of the world.

When you know how foreclosure in TX works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.

The Basic Stages of A Foreclosure

There’s a few stages that are important to any foreclosure process.

Foreclosure works differently in different states around the country.

The two ways different states use to foreclose upon a property are: judicial sale or power of sale.

Connect with us by calling 214-912-5539 or through our contact page to have us walk you through the specific foreclosure process here locally in Dallas/Fort Worth.

In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.

Under Judicial Foreclosure:

  • Your mortgage lender must file suit in the court system.
  • You’ll get a letter from the court demanding payment.
  • Assuming the loan is valid, you’ll have 30 days to bring payment to court to avoid foreclosure (and sometimes that can be extended).
  • If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
  • Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.

Under Power of Sale (or Non Judicial Foreclosure):

  • The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
  • After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
  • The trustee can then sell your property for the lender at a public auction (notice must be given).

Anyone who has an interest in the property must be notified during either type of foreclosure.

For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.

What Happens After A Foreclosure Auction?

After a foreclosure is complete, the loan amount is paid off with the sale proceeds.

Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.

A deficiency judgement is where the bank gets a judgement against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.

Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.

Here’s a great resource that lists the state by state deficiency judgement laws, since every state is different.

Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at USA Cash For Houses to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.

Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.

If you need to sell a property near Dallas/Fort Worth, we can help you.

We buy houses in Dallas/Fort Worth TX like yours from people who need to sell fast.

Give us a call anytime 214-912-5539 or
fill out the form on this website today! >>

Other Foreclosure Resources For Dallas/Fort Worth TX HomeOwners:

Get More Info On Options To Sell Your Home…

Selling a property in today’s market can be confusing. Connect with us or submit your info below and we’ll help guide you through your options.

What Do You Have to Lose? Get Started Now…

We buy houses in ANY CONDITION in TX. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call 214-912-5539...
By |2017-11-22T07:25:53+00:00February 12th, 2017|Uncategorized|22 Comments

22 Comments

  1. funny appropriate jokes May 6, 2017 at 11:59 pm - Reply

    Magnificent beat ! I wish to apprentice at the same
    time as you amend your web site, how could
    i subscribe for a blog website? The account aided me a appropriate
    deal. I have been tiny bit familiar of this your broadcast
    provided brilliant transparent idea

    • Brent Conrad May 8, 2017 at 1:07 pm - Reply

      Glad it helped ! Just keeping checking back as we are always added more useful insight.

  2. http://www.dospad.Net July 1, 2017 at 4:45 pm - Reply

    Thank you for the great post

  3. http://zapyaforpc.me July 3, 2017 at 11:26 am - Reply

    I got this site from my friend who told me about this site
    and now this time I am browsing this web site and reading very
    informative articles at this time.

  4. Maryellen July 13, 2017 at 3:53 pm - Reply

    Thanks for the great guide

  5. Sandy July 13, 2017 at 7:22 pm - Reply

    Thank you for the great article

  6. Http://Www.Failedsenator.Com/ July 13, 2017 at 9:32 pm - Reply

    I spent a lot of time to locate something like this

  7. Www.Ct2600.Org July 14, 2017 at 8:20 pm - Reply

    I spent a lot of time to locate something such as this

  8. I spent a lot of time to find something similar to this

  9. Tomas July 14, 2017 at 8:42 pm - Reply

    I spent a great deal of time to locate something like this

  10. Abkey.Biz July 14, 2017 at 9:24 pm - Reply

    It works really well for me

  11. Marian July 18, 2017 at 4:03 pm - Reply

    Thanks for the terrific guide

  12. www.denverlinux.com July 18, 2017 at 4:15 pm - Reply

    I spent a great deal of time to find something such as this

  13. Fixingwindows8.Com July 20, 2017 at 11:45 am - Reply

    Thanks, it is very informative

  14. Kali July 20, 2017 at 3:15 pm - Reply

    Thank you for the great article

  15. Www.unitesdk.com July 20, 2017 at 3:20 pm - Reply

    This is actually useful, thanks.

  16. www.gipsonwvl.com July 20, 2017 at 3:32 pm - Reply

    Thanks to the terrific guide

  17. Microsoftmeshpack.com July 20, 2017 at 4:37 pm - Reply

    This is truly useful, thanks.

  18. Cathern July 20, 2017 at 6:15 pm - Reply

    I like the report

  19. calistaheritage.org July 20, 2017 at 7:10 pm - Reply

    It works very well for me

  20. Elinor July 20, 2017 at 9:34 pm - Reply

    Thanks for the terrific guide

Leave A Comment

Pin It on Pinterest

Share This