Lawyers/Professionals experienced in foreclosure home

[Daniel Sharma]

Hi,

Looking to understand the legal process for foreclosures (paper work, dos and don'ts, legal costs, how much time it takes, etc). Any lawyers or professionals out there that can help? Happy to pay a lawyer for consultation also.

Thanks,

Daniel

[Don Konipol]

Quote from @Daniel Sharma:

Hi,

Looking to understand the legal process for foreclosures (paper work, dos and don'ts, legal costs, how much time it takes, etc). Any lawyers or professionals out there that can help? Happy to pay a lawyer for consultation also.

Thanks,

Daniel

Conveyance is by warranty deed. Deeds of trust are the most common security instruments.

Following the posting of foreclosure sales at the local courthouse for at least 21 days, the sales themselves take place at the courthouse on the first Tuesday of the month. Texas is a community property 

- Primary Security Instruments: Deed of Trust, Mortgage

- Timeline: Typically 60 days

- Right of Redemption: No

- Deficiency Judgments Allowed: Yes

In Texas, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial

or non-judicial foreclosure process.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

Prior to proceeding with a foreclosure, Texas laws state that the lender must mail the borrower a letter of demand, informing the buyer he has twenty (20) days to pay the delinquent payments or foreclosure proceedings will begin.

At some point after the borrowers twenty (20) days have expired, but at least twenty one (21) days before the foreclosure sale, a foreclosure notice must be: 1) filed with the county clerk; 2) mailed to the borrower at their last known address; and 3) posted on the county courthouse door.

The foreclosure sale must take place on the first Tuesday of any month, even if said Tuesday falls on a legal holiday, but only after the proper preliminary notices have been given. The sale is on the courthouse steps by auction to the highest bidder for cash. Anyone may bid, including the lender, who bids by canceling out the balance due on the note, or some part of it.

Lenders may obtain deficiency judgments, but they are limited to the difference between the fair market value of the property at the time of sale and the balance of the loan in default.