The process of a Texas home foreclosure involves for main aspects. When a home is purchased in Texas and a loan is taken out, two documents are usually signed. They are a promissory note and a deed of trust. The first states that you agree to pay back the loan. The second gives the lender the ability to foreclose without going to court. When a mortgage payment is missed there is a grace period. However, after that grace period you face foreclosure.
What Does a Foreclosure Look Like?
Four main factors in a Texas foreclosure are as follows:
- Nonjudicial foreclosure. Since Texas is a nonjudicial foreclosure state, lenders are not required to go to court before foreclosing. This means the process could happen suddenly and move more quickly. The creditor will follow state specific steps to foreclose on the home.
- Deficiency judgement. If the house is sold for less than the total debt owed, the lender may collect the difference. To get the difference, or deficiency, the lender must file a lawsuit. If there is no lawsuit filed within two years, the deficiency does not have to be paid.
- Redemption period. Texas does not have a redemption period. Which means once the home is foreclosed upon it cannot be reclaimed. The total debt cannot be paid off to regain the home.
- If the person refuses to leave the property the lender may offer money in exchange for them vacating the premises. If that does not work, the lender will usually offer a 3-day period to allow the residents to leave on their own. After that the police may get involved.
If you are facing foreclosure, contact an attorney at Julian, Crowder & Shuster. Call today for a free initial consultation.