Properties in Texas that are on the verge of foreclosure would have to go through a judicial or non-judicial process as mandated by Texas foreclosure laws. The judicial procedure requires the lender to file a case or a lawsuit against the borrower so that a court order will be created. The order will give them the authority to sell the property in question.
However, the judicial method of foreclosure is not the one normally used in the state. The non-judicial method is the one most commonly applied, which does not require going to the courts. The mortgage or deed of trust certificates used in Texas often times include the power of sale clause that allows the lender to start the foreclosure proceedings even without a court order.
Here, all a lender has to do to start the proceedings is to send the borrower a letter asking him to settle all his default payments within 20 days. If after 20 days the borrower fails to pay off his debt, the foreclosure proceedings will begin. After the grace period, the initial course of action performed by the lender to finally foreclose the property is to file a notice of sale.
The notice of sale should also be sent to the borrower and be posted on the door of the county court house. When all of these conditions are met, the sale of the property can begin. The auction is done every first Tuesday of the month. All properties that were foreclosed during the previous month will be auctioned on Tuesday the following month, even if that Tuesday falls on a holiday.
Anybody who wants the property may bid, although the lender has the last say about it. They can refuse highest bidder if the amount of their bid is not sufficient to pay off the default on the property. The lender can put their bids as well, which means they’re taking the property for themselves instead of selling it back to the market.