How Long Does It Take to Foreclose on a Property in Texas?

When you're facing foreclosure, you may find yourself with a lot of questions, and mortgage companies are not always forthcoming with helpful information. One of the most common questions homeowners have about foreclosure is: How long does it take to foreclose on a property in Texas? The short answer is that it depends. However, understanding more about the foreclosure process and the factors involved can help you understand what to expect.

Texas Foreclosure

When you get a mortgage, home equity loan, or other kind of loan for a home, the contract includes an obligation to make regular payments to the lender, and if you fail to do so, the lender is entitled to take legal action, such as foreclosure. Foreclosure is the legal process where a mortgage company or other lender takes back ownership of the home and generally sells it to recover the remaining unpaid balance of the loan.

In Texas, some foreclosures can go through the court system, called judicial foreclosure, which is uncommon. Most foreclosures do not have to go to court.  These are referred to as non-judicial foreclosures. In this kind of foreclosure, the lender has to follow a strict procedure to give the buyer a final opportunity to cure the debt and keep their home.

In 2024, there were 28,946 foreclosure starts in Texas, the third highest of any US state, only behind California and Florida. Overall, foreclosure starts in the US were down 6% from the previous year.

Foreclosure Timeline in Texas

While each situation is a little different, foreclosure regulations provide a general timeline, although it can take longer. In many cases, taking longer is actually a benefit to the homeowner because it gives them more time to come up with a solution. There are three main steps for non-judicial foreclosure, and these provide an estimated minimum timeline for the process.

• After 120 days of non-payment, a mortgage is generally considered in default, and the lender can begin the process of foreclosure. The first step for the lender is to send a notice of default, which notifies the borrower that the foreclosure process is beginning and must give the borrower at least 20 days to resolve the problem. If the homeowner does not cure the debt, the lender continues the foreclosure process.
• The next step is for the lender to send a notice of sale, which tells the borrower of the lender’s intent to sell the home and provides the date and earliest time for the sale. This date has to be at least 21 days after the date of the notice of sale, and the homeowner can still pay back all the money they owe and stop the foreclosure until the day before the sale.
• In the last step, the property is sold to cover the amount the homeowner owes. If the sale of the property does not cover that amount, the lender can take further legal action to recover the remaining debt. This can mean the seizure of other property or assets in some cases.

While this is the basic timeline for foreclosure on a home in Texas, in many cases, homeowners may be able to slow down the process by taking advantage of their homeowner rights. Throughout the foreclosure process, the homeowner has the opportunity to stop the foreclosure by applying for loss mitigation, such as loan modification, short sale, forbearance, or other kinds of assistance.

Many homeowners may also consider bankruptcy when facing foreclosure because it stops the foreclosure process until the bankruptcy is complete, and, in general, the borrower is able to keep their home after bankruptcy. It is important to know that not all foreclosure alternatives are available in every situation. An experienced Fort Worth foreclosure attorney can help you determine your options and decide your next steps.

FAQs  

Q: What Is the 37-Day Foreclosure Rule?

A: The 37-day foreclosure rule is a homeowner protection Law that states a homeowner can apply for loss mitigation with their lender or mortgage company up to 37 days before the Foreclosure sale. In such cases, the lender has to pause the foreclosure, review the homeowner's application, and consider all possible options before it sells the property. This gives the homeowner time to work out a resolution so they can stay in their home.

Q: Which Is Texas's Most Common Foreclosure Process?

A: The most common foreclosure process in Texas is non-judicial foreclosure. This means that the lender and borrower do not have to go to court to start the foreclosure process. Instead, the lender starts the process by sending a notice of intent to begin foreclosure to the borrower. Then, the borrower has a period of time to respond before the lender can take further action.

Q: How Long Can I Go Without Paying My Mortgage?

A: In most cases, a mortgage company or other lender can't start foreclosure on a home until the loan is 120 days delinquent. However, it is important to note that the first missed payment is 30 days delinquent, so 120 days starts counting from the last payment that was made, not the first missed payment.

Q: What Is the One-Action Rule for Foreclosure?

A: The one-action rule for foreclosure means that a lender has to foreclose on and sell a property to recover the remainder of the debt on the defaulted loan before they can file a legal claim with the court against the borrower for anything that isn't covered by the sale. This protects the borrower from having multiple legal actions against them for the same debt, as well as having all their assets seized at one time for the same debt.

You Don’t Have to Face Foreclosure Alone

At Steele Law Firm, PLLC, our focus is on helping Texas clients with difficult financial and legal challenges like foreclosure. We can evaluate your case, determine your options, and help you decide what is right for your family and your home. Our goal is to provide personalized, top-quality representation and counsel to give you the most favorable outcome possible in your case. Reach out to our office today to set up an initial consultation and discuss your situation.