In Texas, non-judicial foreclosure is the most common process used. Here, we outline the steps involved in this foreclosure process to provide a clear understanding:

Step 1: Notice of Default and Intent to Accelerate

Under Texas law, the lender or servicer must send the borrower a notice of default and intent to accelerate via certified mail. This notice gives the borrower a minimum of 20 days to rectify the default before the notice of sale can be issued. The notice should include the amount due and the deadline for payment. In some cases, a breach letter sent as per the deed of trust terms can satisfy this requirement.

Step 2: Notice of Sale

Once the cure period has passed, and at least 21 days before the foreclosure sale, the lender or servicer sends a notice of sale to all borrowers obligated to repay the debt. This notice is sent via regular and certified mail and is also posted at the county courthouse where the property is located. Additionally, it is filed with the county clerk. The notice of sale includes details such as the sale date, time, location, and disclosure for military service members to indicate their military status.

Step 3: The Foreclosure Sale

Foreclosure sales in Texas take place on the first Tuesday of each month, typically between 10:00 a.m. and 4:00 p.m. These sales are commonly held at the county courthouse, although the notice of sale may specify an alternative location. The auction begins no later than three hours after the scheduled time mentioned in the notice. At the sale, the property is sold to the highest bidder, which can be a third party or the foreclosing lender.

While Texas has robust homestead protection laws, it’s important to note that there is no guaranteed right to undo or redeem a property after a mortgage foreclosure. Once the foreclosure sale takes place, ownership of the property transfers to the winning bidder or foreclosing lender.