Texas Commercial Law Firm

In Texas, unlike many other states, liens against real property may be foreclosed nonjudicially without suing for a judgment ordering foreclosure. Texas foreclosure procedure has been described as “brutally short” from the consumer's perspective. As lenders' counsel, we believe it is efficient and economical, thereby lowering servicing costs and ultimately making loans more readily available than they would be if foreclosure procedure were more time-consuming and expensive. When dealing with non-residential mortgage loans in Texas, a foreclosure may be accomplished in 30 days or less. Because most residential lenders use Fannie Mae (“FNMA”) forms which require a 30-day right-to-cure period before accelerating a debt and posting the property for foreclosure, the typical mortgage foreclosure of residential property in Texas may be completed in as little as 51 days.

A properly conducted foreclosure sale is final. Unlike most states with non-judicial foreclosure procedures, in Texas, the borrower has no right to repurchase or “redeem” the property after foreclosure. A borrower's right in that regard is limited to paying all sums owing under the note and deed of trust (including fees incurred in preparing for foreclosure) at any time prior to the sale and have the lien released. If the note balance is in dispute, the borrower may suspend the sale by paying the amount alleged to be owed into the registry of the court.