Texas, known as “The Lone Star State,” is admired for its size, its climate, and its population. It’s easy to see why anyone would want to settle down and buy a home in the state. Unfortunately, Texas is also experiencing a rise in foreclosures. With the economy as it is, one might wonder, “How many payments can you miss before foreclosure begins in Texas?”
Foreclosure is the legal process a bank or other lienholder uses to enforce its interest in a property after a borrower falls behind on payments. In Texas, foreclosure typically involves selling the home through a trustee’s sale. Some laws specifically address how and when the lienholder can begin foreclosure proceedings.
One in every 3,456 housing units in Texas in 2025 has experienced a foreclosure filing. That’s up 35% from October 2024. Multi-family dwellings make up the majority of foreclosures, with the largest number of filings in Dallas, Houston, Fort Worth, and San Antonio.
If you’re behind on mortgage payments or have received a foreclosure notice, it’s not too late. The first step you should take is to hire a foreclosure lawyer with experience. The foreclosure laws in Texas can be confusing and complex, but a skilled foreclosure attorney may be able to help you understand the law, protect your rights, and potentially save your home.
The first thing you need to know is that every rule has a caveat. For most foreclosures, the law allows four missed payments (120 days) before you are in default. With some smaller lenders, however, your loan contract may have different terms, so it’s important to have a foreclosure lawyer look at your loan contract and any other loan documents.
Missing payments is not the only way you can be in default, however. You can be considered in default of your loan if you:
It’s crucial to be aware of these other ways you can default so you don’t inadvertently get a foreclosure notice.
There are three different types of foreclosure in Texas. The amount of the loan will also affect which court your foreclosure case may be referred to.
According to Texas Civil Practices and Remedies Code Section 16.035, there is a four-year statute of limitations on most foreclosures. Texas law also gives the borrower 20 days after the notice of default to pay the amount in arrears to avoid foreclosure. A Weatherford foreclosure lawyer can help you avoid foreclosure if you contact them soon enough.
A: Paying your mortgage, insurance, and taxes on time can potentially avoid foreclosure. However, if you’ve been issued a default notice, there are still several ways to avoid foreclosure in Texas. You can pay the amount you were behind, contact your lender to see if you qualify for a special forbearance, or, if you have a HUD-backed loan, contact the Department of Housing and Urban Development for help.
A: Generally, four missed payments, or 120 days, is the number of payments that will be missed before a notice of default is sent out to the borrower. However, it’s wise to contact your lender at the first missed payment if you are having trouble paying your loan. There may be options like special forbearances or payment plans.
A: Normally, a lender will not begin foreclosure proceedings until you have failed to pay four consecutive payments, or for 120 days. However, late payments may result in fees and damage to your credit, which could make it even more difficult to pay what you owe. Lateness with added fees could lead to foreclosure proceedings if you are unable to pay your late payment within 120 days.
A: Because Texas favors a non-judicial foreclosure process, foreclosures happen fairly quickly. Lenders can essentially fast-track your foreclosure. However, if you understand the foreclosure process and the options available to you, such as loan modification, refinancing your loan if your credit is good, or giving up your home as a deed, you can still take charge of your situation. Hiring a foreclosure lawyer can also help, as they will know what is available to you.
A: The 37 Day Foreclosure Rule is a federal protection from the Consumer Financial Protection Bureau (CFPB) that allows the homeowner 37 days from the default notice to file a loss mitigation form. The lender must respond within five days to notify the borrower whether their application is complete or not. If it’s not complete, they must notify the borrower what is missing, and if it is complete, they should consider mitigation options.
Serving locations all over Texas, Steele Law Firm, PLLC has represented clients in bankruptcy proceedings, guardianship cases, and probate. Limiting her client base allows Ms. Steele to devote ample time to each case, giving personal attention to each unique financial situation. If you are considering foreclosure, contact Steele Law Firm, PLLC, today.
