The foreclosure process in Texas includes tight due dates and particular actions. To avoid foreclosure, speak to the lender about payment strategies, temporary forbearances, or loan modifications.

Page Sections

- When can a lender start foreclosure?

• How can I prevent foreclosure?
• What is loss mitigation?
• What is the foreclosure procedure?
• Can insolvency avoid foreclosure?
• Can I re-finance or offer my home to avoid foreclosure?
• Can I be demanded a shortage?
• Can I stay in my home during foreclosure?
• Additional Resources
  
  When can a lending institution start foreclosure?
  
  Most loans from a bank need to be 120 days overdue before any foreclosure activity starts. However, smaller lenders can often begin foreclosure even if you are only one day late.
  
  The loan provider is just required to send you 2 notifications before a foreclosure sale.
  
  How can I prevent foreclosure?
  
  Talk with your loan provider about a payment plan, a temporary forbearance, or a loan modification. Pay what you can. If your payments are not accepted, save them until you can pay in full. Free of charge foreclosure avoidance therapy, get in touch with the HOPE ™ Hotline at 888-995-HOPE (4673) or go to 995Hope. The earlier you get assistance, the more rights and options you will have.
  
  What is loss mitigation?
  
  Loss mitigation refers to methods to prevent foreclosure. If you lag in payments, ask your lender for a loss mitigation application packet.
  
  For many servicers, if your application is total and gotten a minimum of 37 days before a scheduled sale, the lender needs to stop all foreclosure activities. If your loan provider begins foreclosure after you prompt sent your complete application, you have a right to file a fit to stop the sale.
  
  You can also submit a grievance with Consumer Financial Protection Bureau at 855-411-2372 or online at Submit a Grievance. Keep a copy of your application, accessories, and proof of delivery (such as a fax verification page or tracking number) to show receipt by your lender. Your lending institution ought to also send you a letter telling you whether your application is total.
  
  Consumer laws, policies, policies, and assistance are changing quickly in 2025. Double-check any federal consumer-related details with official government sources, bearing in mind that those sources themselves might change quickly. Speak to a lawyer for the current information.
  
  What is the foreclosure process?
  
  In Texas, foreclosure is typically a three-step procedure.
  
  ( Exception: If you have a home equity loan, home equity credit line, a tax lien transfer loan, or owe assessments to a property owner's association, a court order is normally needed before your residential or commercial property can be posted for sale. In some instances, an order is likewise needed to foreclose on a reverse mortgage. A lawsuit must be submitted if a federal government entity is trying to foreclose, e.g. for residential or commercial property taxes, a condemned residential or commercial property, and so on).
  
  Notice of Default (Demand Letter). By law, lenders and servicers are needed to send a composed notification permitting you 20 days to "cure" (pay completely the quantity owed) to bring the defaulted loan current. Some loans increase this period to 1 month (most FHA, VA and home equity loans).
  
  
  Notice of Sale Filed, Posted, and Mailed. Next, the law requires at least 21 days' written notice of the date the foreclosure sale (auction) is to take location. The 21 days begin from the date the notice is mailed, not the date you get it. Failing to collect your will not stop or revoke the foreclosure sale. The foreclosure notice is likewise posted at the courthouse and filed with the county clerk.
  
  
  Foreclosure Sale. Foreclosure sales are held at the county court house on the first Tuesday of every month. Anyone might bid. After the auction, you do not have a right to redeem your residential or commercial property from the new owner unless it is being sold by a federal government entity, a tax lending institution, or for nonpayment of house owner's association fees. There are time limits involved, and sometimes, you need to pay a redemption charge.
  
  
  Can bankruptcy avoid foreclosure?
  
  Filing for insolvency will delay foreclosure but will not clean out your lien or permit you to remain in the home without paying. Chapter 13 is a reorganization in which particular financial obligations are paid back in time, and the home can be conserved. Chapter 7 is a liquidation and may delay a foreclosure, but usually, it will not allow you to keep your house if you are behind on payments.
  
  Can I refinance or offer my home to avoid foreclosure?
  
  If you are behind in payments, refinancing is typically not a choice. You can offer if the sale profits would pay off the mortgage and the expense of the sale.
  
  Can I be demanded a deficiency?
  
  Lenders rarely sue for a deficiency since of the time and expenditure included. If you are being taken legal action against for a shortage, bankruptcy might be an excellent option for you.
  
  Can I stay in my home throughout foreclosure?
  
  You do not need to vacate on the sale date. If you are still living in the home after a foreclosure, the brand-new owner will have to evict you. You'll get a notification to leave (typically offering 3 days' notification) before an eviction is filed. Some lenders will pay moving costs in order to avoid the time and expenditure of an expulsion case (called "cash for keys").
  
  Lone Star Legal Aid's Get Help If You Can't Pay Your Mortgage tool can help you learn what steps you might take if dealing with foreclosure.
  
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  - Chapter 7 Bankruptcy Fact Sheet
  
  This article explains what can and can not be done through a Chapter 7 insolvency. Learn more
  
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