If you live in Texas and you have a property on mortgage, it is very important that you learn the foreclosure laws enforced in the city so that you would have a fair idea with the proceedings just in case the unforeseen happens.
In Texas, the primary security instrument used is the deed of trust or mortgage. There are two ways to foreclose a property, the judicial method and the non-judicial method. However, the one most commonly used is this state is the non-judicial method.
The judicial foreclosure method requires the lender to file a lawsuit in order to obtain the order from the courts to foreclose the property. This is needed if there is no power of sale present in the deed of trust of mortgage. If there is a power of sale clause included, the non-judicial foreclosure method applies.
In a non-judicial method, the laws of Texas indicate that the lender must send the borrower a demand letter indicating that the buyer has twenty days to cover the entire amount due. If not, the proceedings involving the foreclosure of the property would begin.
At this point, the lender has to wait for the buyer’s response. If he fails to pay his obligations, a foreclosure notice should be filed with the office of the county clerk. A copy should be mailed to the buyer and another one has to be posted on the door of the county house.
The auction for the property is to be held every first Tuesday of the month. Any individual or entity may bid, including the lender. The bidding would take place at the steps of the courthouse. The property will be awarded to the highest bidder.
There is no statutory right of redemption in Texas. This means that there is no provision that allows for the borrower to reclaim the property even if he pays for the default amount in full.