Are you navigating the complexities of commercial foreclosures in the Lone Star State? If you’re a lender, investor, or property owner facing the possibility of a commercial foreclosure in Texas, understanding the state-specific timeline and procedures is crucial.
Texas stands out for its expedited foreclosure process and distinctive monthly six-hour sale window. This can be both a challenge and an opportunity for you. Texas is also unique in that it conducts all of its foreclosure sales one day each month, during a six-hour time frame.
In this blog, we will talk about the legal aspects of foreclosing on a commercial property in Texas and offer practical advice on the initial steps you must consider when the situation arises. Whether you’re taking preemptive measures or you find yourself at the cusp of foreclosing on a borrower, our insights aim to prepare you for the road ahead.
Notice to Cure Phase
Most commercial foreclosures in Texas are non-judicial, meaning that court approval isn’t required and speeds up the process. When foreclosing on a commercial property in Texas, many take 160 days (this is much faster than the national average of 922 days in foreclosure.)
According to federal law, borrowers in Texas must be delinquent for 120 days before lenders can issue a notice to cure. For commercial loans, the second required notice is the notice of acceleration. The lender may demand the full missed amount be paid in full, or if there is an acceleration clause in the promissory note, the lender may declare the full amount due.
After the required amount of time has passed, the lender may issue a notice of sale. The trustee must file with the country clerk and publish the notice in the courthouse. The notice of sale must be filed at least 21 days before the sale.
Sale Phase
In Texas, all commercial foreclosure sales take place between 10 AM and 4 PM on the first Tuesday of each month, unless that Tuesday falls on the Fourth of July or New Year’s Day, in which case the sale will happen on Wednesday. The borrower has the right to cure the default and stop the foreclosure up to the point of sale.
Possible Contingencies to Texas Commercial Foreclosures
When foreclosing on a commercial property in Texas, sales cannot be postponed; the notice of sale instead must be re-issued. If the borrower files for bankruptcy, all foreclosures are suspended until 14 days after the stay is lifted or until the case is dismissed. A temporary restraining order or injunction can stop a foreclosure until it is dismissed, or the court order expires.
Foreclosure Price Calculator
At Total Lender Solutions, our foreclosure pricing calculators help you understand how the foreclosure process is broken down for your state. So, if you are foreclosing on a commercial property in Texas, you would enter your full name, email address, phone number, state, and unpaid principal balance into our trustee’s fee calculator, and the foreclosure fees for your state will be calculated and broken down for you.
The foreclosure process can be overwhelmingly complex, especially as it varies from state to state. That’s why our team at Total Lender Solutions is well-versed and up-to-date on the unique laws of the state of Texas. We work with lenders and communicate with borrowers to ensure that the proper steps are taken in accordance with state laws when you are foreclosing on a commercial property in Texas. Get a quote today with our Foreclosure Price Calculator.
