Home foreclosure sales in Texas are always the 1st Tuesday of every month. You must be given notice of the sale by certified letter. In most cases, filing bankruptcy will stop the sale as long as you file and give notice of the bankruptcy filing before the sale takes place.
Once the borrower falls behind on mortgage payments, taxes or insurance, the mortgage company will send a notice of intent to accelerate. What this means is that the borrower can expect to receive a letter which states how much the mortgage is behind. The letter states a deadline to catch up on the past due payments. Occasionally, this letter also sets a sale date, but typically, a second letter is sent if the mortgage is not brought current by the deadline set in the notice of intent to accelerate.
The notice of foreclosure sale must be given at least twenty days before the sale date unless your mortgage paperwork requires a longer amount of notice. The notice must be given by certified mail. Some panicked people have been known to try to avoid a foreclosure sale by not picking up their certified mail notice. That won’t work. It is extremely important to pick up all certified mail notices. The law only requires that the mortgage company properly mail notice of the sale. If the borrower doesn’t receive the notice, the sale is still going to happen.
If a home loan is a home equity loan, Texas requires an extra step before a mortgage company can set the sale date. Suit must be filed to obtain an Order allowing the sale to go forward.
Foreclosure day is always the first Tuesday of every month. In addition to sending written notice, the notice of foreclosure sale must be posted by the County Clerk in the county where the property is located. Some counties post the foreclosure notices on line. While you should not rely on the online records, Gregg County property owners can access the foreclosure list on the Gregg County website. Harrison County property owners may also view the foreclosure list on line. The online foreclosure list is posted as a courtesy. Just because a sale is not published on line does not mean that the home has not been posted at the Courthouse.
Stopping the sale
Filing bankruptcy will usually stop the foreclosure sale, but the bankruptcy must filed before the sale takes place. The foreclosure trustee must be notified of the bankruptcy and the stay must be in place in order for the sale to be stopped. Consulting a bankruptcy attorney early in the process is important to allow time for a case to be prepared and filed and proper notice sent to the foreclosure trustee.
Your Next Step to Dealing with a Foreclosure
If you are behind on your home and want to keep it, Chapter 13 bankruptcy may help you get caught up. In most cases though, the debtor still has to make a regular mortgage payment plus a catch up payment through the Chapter 13 plan. Other requirements, such as keeping insurance and taxes paid will also have to be met.
A borrower who is behind on your mortgage and has received a threat of foreclosure should contact an attorney immediately. Once a valid sale takes place, you probably cannot get your home back, even if you file bankruptcy.
Read More About Foreclosure
- Allowed Reasons for Foreclosure
- Collection of Deficiency Owed After Foreclosure
- Defenses to Foreclosure in Texas
- Loss of Home for Delinquent Property Taxes
- New 2014 mortgage servicing laws
- Notice Required for Foreclosure
- Options Upon Receipt of Foreclosure Notice
Read More About Bankruptcy and Debt Relief
Chapter 7 – Usually the cheapest and fastest type of bankruptcy, Chapter 7 can wipe out credit cards, medical bills, and loans.
Chapter 13 – Does everything that Chapter 7 does, but with the added benefit of being able to help catch up on past due mortgages, car payments, and taxes.
Taxes – If you owe money to the IRS, there may be several different options for you, including some non-bankruptcy options.
Student Loans – There are many solutions to student loan issues, including getting a better payment plan, curing a default, and even loan forgiveness.
Debt Lawsuit Defense – When a creditor sues you over a debt, you can respond with a defense, which may allow you to win the lawsuit.
Loan Modifications – A special agreement between you and your mortgage lender might help you with a past due mortgage loan.
Debt Library – More in-depth articles on some of the more detailed areas of bankruptcy and debt relief.