Facing foreclosure? Here's what to do next.
Foreclosure in Texas moves fast, but you have far more options than the people knocking on your door want you to believe.
Below is what you're facing and the choices in front of you. The best next step is a free appointment to talk through all of them with an expert who does this every day.
The Texas foreclosure timeline
Texas foreclosures are usually non-judicial, which means they can move in a matter of months. Here is how the process unfolds.
- 1Around 90 days behind
Missed payments
Most servicers begin the formal process once you are roughly three months behind. Late fees add up and the account is referred for default.
- 2At least 20 days to cure
Notice of Default and Intent to Accelerate
The servicer sends written notice giving you at least 20 days to bring the loan current before they accelerate the full balance.
- 3At least 21 days before sale
Notice of Sale
The sale is posted at the county courthouse, filed with the county clerk, and mailed to you at least 21 days before the auction date.
- 4First Tuesday of the month
Foreclosure auction
Texas sales are held on the first Tuesday of the month at the county courthouse, between 10am and 4pm. The home is sold to the highest bidder.
- 5After the sale
Eviction and aftermath
The new owner can begin eviction, your credit takes a major hit, and you may owe a deficiency if the sale did not cover the loan.
What needs to happen
Here is what stands between you and a good outcome. The order and the details matter, which is exactly what we walk you through.
Act now, not later
Time is your most valuable asset. The earlier you start, the more options stay open to you.
Pin down your sale date
Every decision from here is measured against the first Tuesday your home could be sold.
Confirm who has legal authority
Especially if the owner has passed, the right person has to be in place before anything can move.
Know what it takes to catch up
The numbers to reinstate or pay off the loan shape which options are realistic.
Find the options you qualify for
Not every path fits every situation, and the wrong one can cost you time you don't have.
Choose keep or sell, on your terms
Both can be a good outcome. The key is deciding deliberately, not under pressure.
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Your options, at a glance
There is rarely just one way out. Which of these is right comes down to details that are easy to get wrong on your own.
Reinstatement
Bring the loan fully current to cancel the sale. Whether it's within reach depends on your finances and the time left.
Loan modification
Permanently rework the loan into a payment you can afford. A fit when steady income can support a reset.
Forbearance or repayment plan
Temporary breathing room with a path to catch up. Best for a short-term, recoverable hardship.
Refinance
Replace the loan with a new one. An option when you have enough equity and qualifying credit.
Sell before the auction
If selling is the strongest path, we can buy for cash at a fair price before auction so your equity stays with you.
Deed in lieu of foreclosure
Hand the home back to the lender as a cleaner exit than a foreclosure on your record.
Short sale
When you owe more than the home is worth, the lender may accept the sale as payoff.
Bankruptcy
A legal step that can halt the sale and create time to catch up. Serious, and not right for everyone.
Not sure which one fits your situation?
Keep any document you're handed at the door and have it reviewed first
No matter how harmless it looks. We have seen people who believed they were signing a simple permission slip to let someone inspect the home, when the document actually transferred ownership of the house for ten dollars. That is not a joke, and it is not rare. A short timeline and a friendly face at the door are exactly how predatory buyers operate. If anyone asks you to sign on the spot, stop, keep the document, and have someone you trust review it first.
- Open and respond to every letter from your servicer.
- Write down your sale date and work backward from it.
- Ask an expert for help while you still have every option.
- Keep any document you're handed and have it reviewed first.
- Don't leave without the document. Keep anything you're handed at the door and have it reviewed first.
- Don't sign for a quick cash sale without comparing it against every realistic option. It can be the right move when it protects equity before auction.
- Don't ignore servicer mail hoping it goes away.
- Don't wait until the final week to start.
Inherited a property that's in foreclosure?
When a home you inherited is also behind on payments, you are facing two processes at once. On top of everything above, a few extra things have to be handled, and they rarely wait for each other.
If keeping or listing the home is not realistic, a clean cash closing before the sale date may be the simplest way to preserve equity and give every heir a clear outcome.
- 1
Establish your legal right to act
As an heir, you can't make decisions about the home until your authority over it is confirmed.
- 2
Get the lender to recognize you
Servicers will not discuss the loan with an heir until you are formally recognized as the successor.
- 3
Handle the estate and the mortgage together
The estate and the foreclosure run on separate clocks that rarely line up on their own.
- 4
Get every heir on the same page
Major decisions like reinstating or selling usually require agreement among everyone who inherited.
- 5
Protect the equity while you still can
Making a decision, whether it's to reinstate and keep the home or to sell, while it's still your decision, not the lender's.
Live in another state from the property?
Plenty of the people we help do not live in Texas. Maybe you inherited a parent's home from across the country, or moved away years ago. You can resolve almost all of this without flying in. The hard part is doing it on Texas timelines from far away.
The Texas clock still applies to you
Out-of-state mail can arrive late, but the sale date will not move to wait for it.
Someone needs eyes on the property
Condition, security, mail, taxes, and city or HOA notices all need local attention.
Signings can happen remotely
Documents, notarization, and originals can be handled from wherever you live with the right coordination.
You need a point person in Texas
We can be your boots on the ground here while you stay where you are.
Book your free consultation
This page explains what to expect with foreclosure in Texas and is not legal or financial advice. For guidance on your specific situation, book a consultation or talk with a qualified professional.
Foreclosure questions, answered
The questions we hear most from Texas homeowners facing foreclosure.