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.
Notice of Foreclosure
Once the borrower falls behind on mortgage payments, taxes, or insurance, the mortgage company will send a notice of intent to accelerate. This means that the borrower can expect to receive a letter that 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. Still, 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 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. A 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 a written notice, the foreclosure sale notice must be posted by the County Clerk in the county where the property is located. Some counties post foreclosure notices online. While you should not rely on the online records, Gregg County property owners can access the Gregg County website’s foreclosure list. Harrison County property owners may also view the foreclosure list online. The online foreclosure list is posted as a courtesy. Just because a sale is not published online 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 be filed before the sale occurs. The foreclosure trustee must be notified of the bankruptcy, and the stay must be in place 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 occurs, you probably cannot get your home back, even if you file bankruptcy.
Cross Stone Law is a bankruptcy law firm serving individuals and small businesses. Carol Cross Stone is a bankruptcy attorney who helps people and businesses file for bankruptcy. Carol has practiced law for over 35 years. She limits her practice to bankruptcy.
Under federal law, Cross Stone Law is a debt relief agency. We help individuals and business file for bankruptcy relief under the Bankruptcy Code.