what are the steps to foreclose in Texas?

8 Replies

I sold a house on a wrap December 2013. It's in Wichita Falls Texas area which is about 7-8 hours away from where I live. The buyer will not respond. What are the steps to take in order to get them to pay or get the house back? I can't keep making their house payment for them. I have sold almost all my homes in the past on a lease option and not a wrap. 

Step 1 - find a good attorney well versed in TX real estate law to guide you.


Great tx attorney

@Joel S.

  one of the dangers of wraps.. you give title and your still on the hook for the underlying

Not sure how it works in TX but probably just a vanilla foreclosure.. and vanilla foreclosures if its owner occ can't start until they are 120 days delinquent.. and hopefully if it is owner occ you did the dodd frank correctly other wise you should probably try to get cash for keys and a deed In Lui.. either way your going to lose a pretty good chunk of money through this process.  wraps are great until there not.

The foreclosure process in Texas is very short and simple. Homeowners in default on their mortgage can, by law, lose their home in as few as 41 days. And because Texas is a non-right of redemption state, there is no opportunity to reclaim your property once the foreclosure has taken place. For these reasons it is extremely important for you to be informed and act quickly when you encounter difficulty making your mortgage payment.

The sooner you contact your lender or a HUD-approved housing counselor the better! Fortunately there are many options available to assist Texas Homeowners facing mortgage or financial difficulty.

When you take out a loan to purchase residential property in Texas, you typically sign a promissory note and a deed of trust. A promissory note is basically an IOU that contains the promise to repay the loan, as well as the terms for repayment. The deed of trust provides security for the loan that is evidenced by a promissory note.

@Charles - that was the OLD foreclosure rules. New rules that went into affect last year require the debtor be delinquent for 120 days if the default is a monetary default (Payment). Jay pretty much summed up what has to happen.

The foreclosure process in Texas is very short and simple. Homeowners in default on their mortgage can, by law, lose their home in as few as 41 days.

I read this as well on other sites. 

Read this instead. The CFPB is like the IRS. They don't follow due process. What they say goes. Screw state law. This is Federal:


...and not to beat a dead hourse but just in case some [email protected] brings it up, IF you qualify for small servicer exemption, you are STILL subject to the 120 day rule. Mom and Pop servicers that sold their home and did a seller carryback have no clue what awaits them if they try and foreclose prior to day 120.

This applies to delinquency so, let's not split hairs. If your loan matures and you don't pay it off, its a non monetary default and not subject to 120 day rule. If you transfer ownerhsip in violation of the terms of your note, again, its not monetary so, give them a chance to cure the defect and at the end of the deadline, foreclose but, if they are delinquent and you file first legal before day 120, your gonna end up on the news.

I wouldn't go copying some language from some website and include it in court when i'm sued for a wrongful foreclosure, because some keepmytexashome website says I don't have to follow Federal rules.

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