Texas Commercial Law Firm
Foreclosure
11. Holidays. Foreclosure sales may be held on a holiday. Koehler v. Pioneer American Insurance Company, 425 S.W.2d 889 (Tex. Civ. App.--Fort Worth 1968, no writ). 12. Time of sale. The time of sale is determined by the time generally used in the area and established by Congress for the area and not by the solar or true sun time. McFarlane v. Whitney, 134 S.W.2d 1047 (Tex. Comm'n. App. 1940, opinion adopted). 13. If lender overbids. A lender who mistakenly overbids at foreclosure sale may be able to secure equitable relief and avoid having to make payment to an inferior lienholder or the mortgagor for the excess under some circumstances. McClure v. Casann Claire Apartments, Ltd., 560 S.W.2d 457 (Tex. Civ. App.--Beaumont 1977, no writ). 14. Soldiers and Sailors Civil Relief Act of 1940. This Federal Act prohibits foreclosure of liens against a mortgagor who is in the military service at the time of foreclosure or within 90 days thereafter. This provision applies only to the present owner of the property and not to one who has transferred his interest by way of assumption or otherwise. Additionally, the Act does not apply to debts created subsequent to completion of military service.
15. Non-Military affidavit. The existence of the Soldiers and Sailors Civil Relief Act causes title companies to require evidence that the mortgagor was not in the service at the time of foreclosure. This is the so-called “non-military” affidavit which is used in all foreclosures involving individuals. While it is not a legal requirement for a valid foreclosure, it is an underwriting standard state-wide for all title companies.
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