Texas Commercial Law Firm

While properly executing a properly completed appointment of substitute trustee at the right time may seem like a technical requirement, it is strictly enforced in Texas. This is because Texas foreclosure process is so swift, there is relatively little opportunity for a borrower to challenge a nonjudicial foreclosure. Furthermore, the consequences of foreclosure, while usually unavoidable, are undeniably severe. After all, one may lose their home or business within a relatively short period of the initial default. Given the comparatively swift and harsh nature of Texas foreclosure procedures, Texas courts uniformly require strict compliance with the deed of trust. Among the requirements stated in the deed of trust, appointment of a substitute trustee has been treated by Texas courts as one of the most critical.

1. Appointment of substitute trustee. Texas law is clear that the express terms of the security instrument control the appointment of the substitute trustee and the deed of trust will be strictly construed to determine if the appointment complied with its terms. Sullivan v. Hardin, 102 S.W.2d 1110 (Tex. Civ. App.--Amarillo 1937, no writ); Hart v. McClusky, 118 S.W.2d 1077 (Tex. Civ. App.--Amarillo 1938, writ ref'd); Brown v. National Loan and Investment Company, 139 S.W.2d 36 (Tex. Civ. App.--Amarillo 1940, writ dismissed, judgment cor.).

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