The foreclosure process in Texas includes tight deadlines and particular steps. To prevent foreclosure, speak to the loan provider about payment plans, temporary forbearances, or loan modifications.

Page Sections

- When can a lender start foreclosure?

• How can I avoid foreclosure?
• What is loss mitigation?
• What is the foreclosure process?
• Can bankruptcy avoid foreclosure?
• Can I refinance or sell my home to prevent foreclosure?
• Can I be demanded a deficiency?
• Can I remain in my home throughout foreclosure?
• Additional Resources
  
  When can a lending institution start foreclosure?
  
  Most loans from a bank must be 120 days delinquent before any foreclosure activity begins. However, smaller sized loan providers can in some cases start foreclosure even if you are only one day late.
  
  The loan provider is just needed to send you two notifications before a foreclosure sale.
  
  How can I avoid foreclosure?
  
  Talk with your lending institution about a payment strategy, a short-lived forbearance, or a loan adjustment. Pay what you can. If your payments are not accepted, conserve them until you can pay completely. Totally free foreclosure avoidance therapy, call the HOPE ™ Hotline at 888-995-HOPE (4673) or check out 995Hope. The earlier you get help, the more rights and choices you will have.
  
  What is loss mitigation?
  
  Loss mitigation describes methods to avoid foreclosure. If you're behind in payments, ask your lender for a loss mitigation application package.
  
  For many servicers, if your application is total and gotten at least 37 days before a scheduled sale, the loan provider should stop all foreclosure activities. If your lender starts foreclosure after you prompt submitted your complete application, you have a right to submit a suit to stop the sale.
  
  You can also file a grievance with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Problem. Keep a copy of your application, attachments, and proof of delivery (such as a fax confirmation page or tracking number) to prove receipt by your lending . Your lending institution ought to also send you a letter informing you whether your application is complete.
  
  Consumer laws, policies, policies, and assistance are changing quickly in 2025. Double-check any federal consumer-related information with official federal government sources, remembering that those sources themselves might alter quickly. Speak to an attorney for the most current information.
  
  What is the foreclosure process?
  
  In Texas, foreclosure is usually a three-step procedure.
  
  ( Exception: If you have a home equity loan, home equity line of credit, a tax lien transfer loan, or owe evaluations to a property owner's association, a court order is generally required before your residential or commercial property can be posted for sale. In some instances, an order is also required to foreclose on a reverse mortgage. A suit must be submitted if a government entity is trying to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, and so on).
  
  Notice of Default (Demand Letter). By law, lending institutions and servicers are required to send a written notification permitting you 20 days to "treat" (pay in complete the quantity owed) to bring the defaulted loan current. Some loans increase this period to one month (most FHA, VA and home equity loans).
  
  
  Notice of Sale Filed, Posted, and Mailed. Next, the law needs at least 21 days' composed notification of the date the foreclosure sale (auction) is to occur. The 21 days start from the date the notice is sent by mail, not the date you get it. Failing to collect your licensed mail will not stop or revoke the foreclosure sale. The foreclosure notification is also posted at the courthouse and submitted with the county clerk.
  
  
  Foreclosure Sale. Foreclosure sales are held at the county courthouse on the very first Tuesday of monthly. Anyone may bid. After the auction, you do not have a right to purchase back your residential or commercial property from the new owner unless it is being offered by a federal government entity, a tax loan provider, or for nonpayment of property owner's association costs. There are time frame involved, and in many cases, you need to pay a redemption charge.
  
  
  Can insolvency prevent foreclosure?
  
  Declare bankruptcy will postpone foreclosure but will not eliminate your lien or allow you to remain in the home without paying. Chapter 13 is a reorganization in which specific debts are repaid over time, and the home can be conserved. Chapter 7 is a liquidation and may delay a foreclosure, however usually, it will not permit you to keep your house if you are behind on payments.
  
  Can I re-finance or sell my home to prevent foreclosure?
  
  If you lag in payments, refinancing is normally not an option. You can sell if the sale earnings would settle the mortgage and the cost of the sale.
  
  Can I be demanded a deficiency?
  
  Lenders rarely demand a deficiency because of the time and expenditure included. If you are being demanded a deficiency, bankruptcy might be a good option for you.
  
  Can I remain in my home throughout foreclosure?
  
  You do not have to leave on the sale date. If you are still residing in the home after a foreclosure, the new owner will need to evict you. You'll get a notification to abandon (normally giving three days' notice) before an expulsion is filed. Some lenders will pay moving expenses in order to avoid the time and expenditure of an eviction proceeding (called "cash for keys").
  
  Lone Star Legal Aid's Get Help If You Can't Pay Your Mortgage tool can assist you learn what steps you might take if facing foreclosure.
  
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