If you have defaulted on your mortgage payments in Texas, your creditors may begin the home foreclosure process. Lenders must follow specific rules when initiating this act. Seek out a Dallas bankruptcy lawyer to explore the alternatives available to you in defending against home foreclosure.
There are 2 types of home foreclosure in Texas. The first is a judicial foreclosure in which the lender must file a lawsuit in order to sell the property at auction. The second type is called a non-judicial foreclosure, wherein the terms of the mortgage loan include a power of sale clause which allows the lender to sell the property without the need to go to court first.
Power of Sale Foreclosures
If your mortgage agreement contains a power of sale clause that also determines the time, place and terms of the sale, the lender must follow this process:
- Mail a letter of demand to the debtor outlining the amount owed within 20 days;
- File a foreclosure notice with the county clerk, the debtor and post notice on the county courthouse’s door if the borrower has failed to pay within the 20 day grace period and, at least, 21 days before the foreclosure sale; and
- The sale must occur on the first Tuesday of the month regardless of holidays.
Protect Your Assets with a Dallas, Texas Bankruptcy Lawyer
The home foreclosure process in Texas can occur in as little as 60 days. You can delay the proceedings by contesting the foreclosure in court or filing for bankruptcy. Specializing in bankruptcy law in Texas, the law offices of Warren & Migliaccio, L.L.P. can help protect your assets against hasty home foreclosures. For a free consultation, call 1-888-584-9614 today.