5 Ways to Stop a Foreclosure in Texas

What is a Foreclosure

A foreclosure happens when your mortgage lender takes your home because you missed payments. In Texas, this can happen after missing 3 monthly payments.

The lender sells your house at auction to get back the money you owe. Foreclosure hurts your credit score and can make it hard to buy another home for years.

The good news is you have options to stop it, even after you get a default notice.

Time is critical! Act quickly to save your home.

Texas Foreclosure Timeline

Day 1: Missing Payments

Lender must wait 120 days before starting foreclosure

Notice of Default

20-day grace period to make late payments

Notice of Sale

Sent at least 21 days before foreclosure sale

Foreclosure Sale

First Tuesday of month, 10am-4pm at county courthouse

Negotiate with Lender

Contact your mortgage company immediately to discuss options like:

Forbearance, repayment plans, loan modifications, or refinancing may be available to help you keep your home.

Many lenders prefer to avoid foreclosure and might work with you on a solution.

Sell Your Home

If you can’t reach an agreement with your lender, consider selling your home before auction.

A short sale may be possible if your home’s value is less than what you owe. This affects credit, but less severely than foreclosure.

Deed in Lieu of Foreclosure

Transfer ownership of your home directly to the lender to cancel foreclosure proceedings and forgive mortgage debt.

This option offers a faster process than foreclosure and isn’t made public, though it has a similar effect on your credit score.

File for Bankruptcy

Filing for Chapter 13 bankruptcy creates an automatic stay on all debt collection actions, including foreclosure.

Chapter 13 allows you to catch up on mortgage payments over five years, while Chapter 7 only temporarily stops foreclosure.

Property Redemption

You can redeem your property anytime between receiving the notice of default and the foreclosure sale.

This requires paying off all underlying mortgage debt and interest incurred during foreclosure. Request a payment quote from your lender.