If you have defaulted on your Texas mortgage, it is still possible to avoid foreclosure if you are able to pay the full past due balance, as well as any foreclosure costs that the lender has incurred. If this is not possible for you, there are still ways that you may be able to stave off losing your property; but, this is wholly dependent on whether your foreclosure is judicial or non-judicial.

Non-judicial foreclosure

 According to United States Foreclosure Laws, foreclosure in Texas is dependent on whether the contract you signed with the lender gives them power of sale. Power of sale is a clause in the mortgage that allows the lender to pay off a defaulted loan balance by selling the property.

When you are facing a non-judicial foreclosure, your options are much more limited, as you must work directly with the lender. However be aware that the lender is required by state law to give you 20 days’ notice to pay off the remaining balance due on the mortgage, and may only initiate foreclosure proceedings after those 20 days have passed.

Judicial foreclosure

 If your mortgage does not contain a power of sale clause, then the lender must file a lawsuit through the court in order to foreclose. It is during this time that you may be able to delay the foreclosure process by filing motions with the court and pushing back court dates. The main thing to be aware of in a judicial foreclosure is that the property is not foreclosed until the court declares it to be, and you may be able to fight the lawsuit up until this decision is reached.

This is an informative article and is not to be used as legal advice.