Foreclosure is a challenging and often complicated process for lenders. In Texas, a non-judicial foreclosure offers significant advantages to lenders above judicial foreclosures, allowing lenders to expedite the process and keep costs down. There are important Texas commercial foreclosure laws for lenders to adhere to when enacting the process.
Navigating the complexities of non-judicial foreclosure in Texas can be daunting for lenders. That’s where Total Lender Solutions comes in. With over 15 years of experience, Total Lender Solutions is dedicated to assisting lenders in maximizing their recoveries on defaulted loans. Below is an outline of the Texas foreclosure laws.
An Overview of Texas Commercial Foreclosure Laws
While non-judicial foreclosure offers significant benefits to lenders, it’s essential to navigate the process correctly to maximize results. Texas nonjudicial foreclosures have an accelerated timeline compared to many other nonjudicial states. Therefore, lenders must ensure they adhere to the state’s requirements and follow the necessary steps meticulously.
Preforeclosure
The foreclosure process begins when a loan goes into default, either due to a monetary or non-monetary breach. The lender initiates the process by sending a Notice of Sale (NOS) to the borrower. This notice informs the borrower of the default. The NOD cannot be given sooner than 20 days before the loan is accelerated.
The lender directs the trustee to prepare and file a notice of trustee’s sale with the county clerk. This notice includes important information such as the date, time, and location of the foreclosure sale. It must be filed with the county clerk, posted at the county courthouse, and sent to the borrower via certified mail at least 21 days before the sale date. This provides the borrower with a three-week window to pay off the loan and avoid foreclosure.
Sale Phase
If the borrower fails to satisfy the debt within the specified timeframe, the property can be sold at auction to the highest bidder. All non-judicial foreclosure auctions in Texas take place on the first Tuesday of every month.
Additional Info and Possible Delays
If the borrower files for bankruptcy, it can stall a foreclosure until fourteen days after the stay is lifted or the case is dismissed. A temporary restraining order or injunction can stop the foreclosure until the case is dismissed or the court order expires.
Sales cannot be postponed. The foreclosure must be re-noticed to move the sale date.
A Partner for Lenders Enacting Commercial Real Estate Foreclosures in Texas
Our team of highly experienced real estate professionals and legal experts simplify the foreclosure process, providing comprehensive solutions and seamless communication.
Total Lender Solutions can help you foreclose your commercial real estate property as a valuable extension of your team, guiding you through the entire foreclosure process. Give us the reins so that you can focus on your customers. Our expertise in California, Texas, Nevada, Arizona, Washington, Missouri, and Oregon means that our specialists can protect your best interests.
