Texas Foreclosure Process

Ever wondered how the foreclosure process works in Texas?  When a loan payment is missed, the lender sends a letter nicely asking that it be paid.  This will go on for several months of missed payments.  Usually around the 4th or 5th month, the lender gets more aggressive by sending a demand letter giving 30 days to bring the loan current.  Once that date passes, the house can be posted for foreclosure and the lender must wait at least 21 days to actually foreclose.  Across Texas, foreclosures only occur on the first Tuesday of every month and are held at the county courthouse.  When we say a house was sold on the courthouse steps, that’s literally what it means.  If no one bids the minimum bid, the lender ends up owning the home.  If the owner is still in it, they will be evicted.  Of course, there’s a lot more to it, but this is a good overview.  Fortunately, foreclosures are few and far between in Central Texas right now.  If an owner is missing payments, it’s always best to sell the house and avoid the foreclosure.