Austin Texas Foreclosure Process
What is foreclosure?
If the mortgagee has established a record of constantly falling behind on mortgage payments, the lender may choose to execute their rights as a lien holder and initiate legal procedures to have the house auctioned for sale. If your house is located in Austin, TX then your lender will have to follow the Texas foreclosure process and file documents with Travis County.
What happens in a foreclosure?
If you are found to continuously fall behind on your mortgage payment and have not made any arrangements to become current then the lender can initiate foreclosure by filing a lawsuit to obtain a court order to foreclose, or by filing a foreclosure notice to the county clerk. The way the bank will start foreclosure process will depend on the conditions of your mortgage. If there is a “power of sale” in your mortgage then this gives the authority to the lender to sale your property in the event that you can’t pay your mortgage any more.
The majority of home loans in the Austin, TX area are constructed with a “power of sale” clause. So for the sake of this article, I will only discuss the foreclosure process of mortgages with the “power of sale” clause. This process is also known as the non-judicial process.
The Texas foreclosure process follows structured phases for the lender to auction the house on sale. Prior to proceeding with a foreclosure, Texas laws state that the lender must mail the borrower a letter of demand, informing the buyer he has twenty (20) days to pay the delinquent payments or foreclosure proceedings will begin. At some point after the borrowers twenty (20) days have expired, but at least twenty one (21) days before the foreclosure sale, a foreclosure notice must be:
filed with the county clerk;
mailed to the borrower at their last known address; and
posted on the county courthouse door.
The foreclosure sale must take place on the first Tuesday of any month, even if said Tuesday falls on a legal holiday, but only after the proper preliminary notices have been given.
The trustee begins the auction and bids until the sum is equivalent to at least two-thirds the value of the initial appraisal. All results of the sale are reported to the court and the lender is allowed to inquire with the court about the confirmation of sale. All funds from the sale are fairly distributed and a new deed order is drafted for the buyer. The new buyer has the right to acquire the property once the court confirms the sale. If the defaulted mortgagee has not or is unwilling move out of the auctioned house, then there is a possible threat of eviction from the Sheriff.
The Texas foreclosure process is the court structured methodology to resolve lender foreclosure complaint. However, if you as a homeowner in Austin, Texas region would like to save your homes from Foreclosure nightmare, you are free to get qualified help from professionals. Contact your local foreclosure specialist to inform you of your foreclosure options.
Dwayne Clark is a Chairman of the Board of The Troubled Homeowner Organization. Dwayne helps homeowners in the Austin,Texas area overcome difficult situations that may arise during homeownership. Dwayne and The Troubled Homeowner Organization believes in the sharing of knowledge and information to help others succeed. On our website TroubledHomeowner.com, you will be able to find several articles, do it yourself guides and videos that will arm homeowners with knowledge and power to change their situation. Don’t hesitate to contact us. Our organization will do its best to help you solve your Real Estate Problems.
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