Plain-English Guide
How Foreclosure Works in Texas, Step by Step
Texas foreclosures can move faster than in many states. Here is the usual order of events, what each stage means, and the minimum time Texas and federal rules require between them.
The short version
Most Texas homes are financed with a deed of trust. That document usually allows the lender to foreclose without going to court (a "non-judicial" foreclosure). Instead of a lawsuit, Texas law requires specific notices and waiting periods, and the sale happens at a public auction on the first Tuesday of the month at the county courthouse.
120 days: federal rules generally keep a servicer from starting foreclosure until the loan is more than 120 days behind.
20 days: the minimum time a Texas notice of default must give you to cure before a sale can be noticed.
21 days: the minimum notice before a foreclosure sale.
Those are minimums. Many foreclosures take longer, and sales are often postponed. But once a sale is posted, the auction can be as little as three weeks away, so it pays to act early.
- 1
Missed payment and late notices
Months 1 to 3Late fees start and the servicer calls and sends reminder letters. Federal rules require the servicer to try to contact you early and to tell you about loss-mitigation options.
Best options here: catching up, forbearance, a repayment plan, or starting a modification application.
- 2
The 120-day line
Around month 4For most mortgages on a primary home, a servicer generally cannot make the first foreclosure notice or filing until the loan is more than 120 days delinquent. If you submit a complete loss-mitigation application before that point, foreclosure generally cannot start while it is being reviewed.
- 3
Notice of default (demand letter)
At least 20 days to cureSent by certified mail. It states the amount needed to cure the default and gives at least 20 days to do it before a notice of sale can be given. It may also be called a notice of intent to accelerate.
Do now: request a written reinstatement quote and send any loss-mitigation documents the servicer asks for.
- 4
Notice of acceleration
After the cure period endsThe lender declares the entire loan balance due, not just the missed payments. Many servicers still accept reinstatement for a while after this, but you need to ask, and get the number in writing.
- 5
Notice of (substitute) trustee's sale
At least 21 days before the salePosted at the courthouse, filed with the county clerk, and mailed by certified mail. It lists the sale date (a first Tuesday) and the earliest time the sale will start. Counties also post these online.
Do now: see what to do when a sale is scheduled.
- 6
Foreclosure sale
First Tuesday, between 10 a.m. and 4 p.m.A public auction at the area the county designates, usually at or near the courthouse. The sale must start no later than three hours after the time listed in the notice. The lender often bids the amount owed.
- 7
After the sale
Days to weeksFor a typical mortgage foreclosure in Texas, there is no right to buy the home back after the sale. The new owner generally must give written notice to vacate (often 3 days) and then file an eviction case in court. Nobody can lawfully remove you without a court order.
Exceptions worth knowing
Home equity loans and reverse mortgages
These require a court order before a foreclosure sale, usually through an expedited process under Texas Rule of Civil Procedure 736. If you receive court papers, response deadlines are short. Talk to a lawyer or free legal aid right away.
HOA foreclosures
A homeowners association can foreclose for unpaid assessments in some cases. Texas gives owners a right to redeem the property for a period after an HOA foreclosure sale, but the deadlines are strict.
Property tax foreclosures
Tax foreclosures go through court. Owners of a homestead generally have a longer redemption period after a tax sale than other owners.
Military service members
Active-duty service members and their families have extra protections under the federal Servicemembers Civil Relief Act. Texas foreclosure notices must include a statement about these rights. If you or your spouse is serving, tell your servicer in writing.
What about money owed after the sale?
If the sale brings in less than what is owed, a lender may be able to pursue a "deficiency" for a limited time, with credit for the home's fair market value. Home equity loans in Texas are generally non-recourse, which means no deficiency. Ask an attorney about your specific loan.
Laws change and every loan is different. For advice about your situation, contact a Texas attorney or a free HUD-approved housing counselor. See our free resources.
Common Questions
Texas Foreclosure FAQ
How long does foreclosure take in Texas?
From the first missed payment, it is often four to seven months or more, but it varies a lot. The legal minimums after the 120-day point are about 20 days for the default notice plus 21 days for the sale notice, so a sale can come quickly once formal notices start.
Can the sale be postponed?
Yes. Servicers postpone sales for many reasons, including pending loss-mitigation reviews. A postponement is not a cancellation. A new notice of sale may follow.
Can I stop a foreclosure by paying the past-due amount?
Often, yes. This is called reinstatement. Ask for a written reinstatement quote that includes fees and a good-through date. After acceleration, the servicer may not be required to accept it, so ask early.
Will I owe money after a foreclosure?
Possibly, depending on the loan type and the sale price. See "What about money owed after the sale?" above and talk to an attorney.
Does foreclosure hurt my credit?
Yes. A foreclosure generally stays on a credit report for seven years and can delay a future mortgage for several years. Alternatives such as a modification, a short sale, or selling before the sale can be less damaging.
Which stage are you in?
Answer five quick questions and get a plain-English next step.