Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.
Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).
Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.
In Texas, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to default on mortgage payments. Texas law permits both judicial and non-judicial foreclosures, but non-judicial foreclosure is more common. This process is governed by the Texas Property Code and requires the lender to follow specific steps, including providing notice to the borrower. A notice of default is typically sent after a borrower misses payments, followed by a notice of sale, which must be posted at least 21 days before the sale date. Foreclosure sales in Texas occur on the first Tuesday of each month and are held as public auctions at the county courthouse. Borrowers have the right to reinstate the loan before the foreclosure sale by paying the past due amounts, and there is no statutory right of redemption after the sale, meaning the homeowner cannot reclaim the property once it's sold. It's important for homeowners facing foreclosure in Texas to consult with an attorney to understand their rights and any potential defenses they may have.
