Texas has a comparatively quick foreclosure timeline compared to other states. Texas is also unique in that it conducts all foreclosure sales one day each month, during a six-hour timeframe. Because the foreclosure process can happen quickly, it’s crucial for lenders to seek out a foreclosure service immediately to avoid costly foreclosure mistakes. See the Foreclosure Action Plan for more information.
Notice to Cure Phase
According to federal law, borrowers must be delinquent for 120 days before lenders can issue a notice to cure. For residential loans, once the notice to cure has been issued, borrowers have twenty days to cure the default.
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 county clerk and publish the notice in the courthouse. The notice of sale must be filed at least twenty-one days before the sale.
Sale Phase
All 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 January 1, 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 the sale.
Possible Contingencies to Texas Commercial Foreclosures
Sales cannot be postponed; the notice of sale must be reissued. 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.
Keep Your Team Educated About Foreclosure Law
At Total Lender Solutions, we advocate for lenders looking to maximize recoveries on defaulted loans. For over 15 years, our team of highly experienced real estate professionals and legal experts has transformed complicated processes into clear resolutions for institutional and private lenders. We work as a vigorous extension of your team to provide comprehensive solutions and seamless communication, from pre-foreclosure and notice of default to the final sale phase. Our dedication and persistence when it comes to the foreclosure process ensures that our clients feel confident in reaching a successful outcome. Contact us today.
