If you are facing foreclosure in Texas, it’s important to understand some of the basics, including:
- the most common type of foreclosure procedure (judicial v. nonjudicial) used in Texas
- how much time you have to respond
- your rights and protections in the process, and
- what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).
Below we have outlined some of the most important features of Texas foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.
|Common type of foreclosure process||Nonjudicial: under power of sale in deed of trust|
|Time to respond||Foreclosing party must serve notice of default 20 days before serving notice of sale. Notice of sale must be served by mail on homeowner 21 days before sale. Foreclosing party must also post notice of sale on courthouse door (or wherever court commissioners determine is equivalent).|
|Reinstatement of loan before sale||Allowed within 20 days after service of notice of default|
|Redemption after sale||No|
|Special protections for foreclosures involving high-cost mortgages||None|
|Special state protections for service members||Tex. Civ. Prac. & Rem. Code § 16.022|
|Deficiency judgments||Allowed if foreclosing party brings separate lawsuit within two years of sale. Amount may be determined by fair market value of the property, if homeowner requests it.|
|Cash exempted in bankruptcy||About $11,000 for one person, $22,000 for a married couple under federal bankruptcy exemptions|
|Notice to leave after house is sold||New owner must serve former owner with three-day notice to quit (leave) and then file eviction (forcible detainer) lawsuit. Tex. Prop. Code Ann. §§ 24.002 to 24.005|
|Foreclosure statute||Tex. Prop. Code Ann. § 51.002|