The Texas foreclosure timeline is shorter than some states’ processes but gives you enough time to take steps to try to keep your property. Working with an experienced attorney can help you stop foreclosure.
What is Foreclosure?
The nonjudicial foreclosure process occurs when you become seriously delinquent on your property payments to a lender and the lienholder exercises their rights under the loan contract to seize and sell the property to recoup their money.
Texas Foreclosure Timeline Steps
While it doesn’t usually require the courts in order to foreclose on your home, it does require that the lender conform to an established Texas foreclosure timeline. This timeline creates the opportunity to decide what’s best for your financial health, to work to keep the property under your ownership or to let it go and try to regain a healthier financial footing.
Debt And Delinquency
Before the foreclosure process begins, you have to be delinquent in your payments. This starts at day-one of a missed payment. At this point many lenders will begin trying to contact you about the late payment, but they are only required to contact you within 36 days of the delinquency and within 36 days of each delinquent payment after that.
45 days after your missed payment or sooner, your lender will advise you in writing about your loss mitigation options. This may include an application, but that is not always the case. These are programs the lender has available to try to help you get back on track with your loan.Notice Of Default And Intent To Accelerate
Once your account is delinquent for 120 days, or about 4 months, the lender will advise you that you are in default. This notice will demand the full amount of the delinquency by a date no less than 20 days from the date of the letter. This begins the official foreclosure process, notifies you of their intent to accelerate the loan, and how much you will need to pay to avoid the foreclosure process.
Notice Of Acceleration And Foreclosure Sale
If you fail to “cure” the delinquency, you will be in default and the lender will move on to acceleration, the next step in the Texas foreclosure process. This means that the entire unpaid balance of the loan becomes due. A foreclosure sale will also be scheduled at least 21 days from the date of the notice, when your property will be auctioned to the highest bidder.
In Texas, foreclosure sales are held the first Tuesday of the month from 10 AM to 4 PM. The trustee will read the notice of sale that specifies the lender’s terms, and open the bidding. If no bids meet the amount owed on the property, the trustee may be required to place a bid in the lender’s name, in which case the lender retains the property to sell it as a traditional sale later.
Notice to Vacate
At this step of the Texas foreclosure process, you can expect the new owner to send a three-day Notice to Vacate. After that point, they can begin eviction proceedings in court. Once a judgment to evict is entered, the Constable will post a notice to vacate and you will be forcibly removed or arrested if you don’t leave.
Stopping The Foreclosure Process
If you’re facing foreclosure in Texas, you need to contact an experienced bankruptcy attorney immediately. Your attorney will talk to you about your options and how bankruptcy can help you regain your financial stability. When you file bankruptcy, the Texas foreclosure process is automatically stayed. There are two types of bankruptcy you may file.
Chapter 7 Bankruptcy
Under Chapter 7, unsecured debts are are discharged, which means that legally you no longer owe them.. Secured debts, such as a property loan, are either exempted (such as if you wanted to keep your property now that other bills were off the table) or surrendered (if you wanted to walk away from the property without the debt holding you back).
Chapter 13 Bankruptcy
Under Chapter 13 bankruptcy, your back payments and sometimes also your ongoing monthly payment is structured into a single payment for the next 3 to 5 years. This can save you thousands of dollars and leave you caught up in a relatively short time frame.
Get The Legal Help You Need Today
When facing the foreclosure timeline in Texas, the earlier you get a bankruptcy lawyer involved, the more time you have to understand, evaluate, and decide on the right path forward for you.
Contact us today for a free consultation with an experienced attorney who’s ready to fight for you.