Texas Commercial Law Firm

h. Guarantors. Unlike makers of note secured by realty, guarantors are not entitled to notice of foreclosure under Property Code § 51.002. Bishop v. National Loan Investors, L.P., 915 S.W.2nd 241 (Tex. App.--Ft.Worth, 1995). Although UCC notice requirements protect guarantors who do not receive notice of the foreclosure sale from deficiency liability, Hernandez v. Bexar County National bank, 710 S.W.2d 684, 687 (Tex.App.--Corpus Christi) writ ref'd n.r.e., per curiam, 716 S.W. 2d 938 (Tex. 1986), the UCC does not control on matters relating to “the creation or transfer of an interest in or lien on real estate. Tex. Bus. & Com. Code Ann.,§ 9.104(10) (Vernon, 1994). Guarantors of note secured by real estate are not covered by the UCC or the Texas Property Code. Tex. Prop. Code. Ann. § 51.002 (Vernon, 1005). i. Deceased mortgagors. In the event of a deceased mortgagor, generally speaking, notice must be sent to their administrator and to the decedent and to the decedent's estate at their last known address (but see discussion in §IIM.1 below). Otherwise, the foreclosure may be set aside as wrongful. Fenimore v. Gonzalez County Savings and Loan Association, 650 S.W.2d 213 (Tex. Civ. App.--San Antonio 1983, no writ) (see further discussion in §M.1 below).

j. Removal of posted notices. If notices are actually posted the required number of days before foreclosure, the lender has no obligation to verify that they remain posted and subsequent removal of the notices by a stranger will not affect the validity of the foreclosure sale. Chambers v. Lee, 566 S.W.2d 69 (Tex. Civ. App.-- Texarkana 1978, no writ).

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