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While the general guidelines for a foreclosure remain consistent in each state, some states have legal rules that are state specific and may not apply in other states. Texas foreclosure has legal rules that are only used by a few other states and it is important that the Texas homeowner be aware of these regulations. ApartmentStores Moving and Relocation can offer valuable resources in the decision making process concerning a Texas foreclosure.

Texas laws allow lenders to foreclose on deeds of trusts or mortgages in default either by a judicial or non-judicial foreclosure process. The judicial process involves the lender filing a lawsuit for a court order of foreclose and is used when no power of sale is present in the mortgage or deed of trust.

When a power of sale clause exists in a mortgage or deed of trust the lender is able to use the non-judicial process of foreclosure. This clause pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. The sale of the property may be executed by the lender or their representative, typically referred to as the trustee.

If the deed of trust or mortgage contains a power of sale clause that specifies the time, place and terms of sale, then the specified procedure is required to be observed by the Texas legal system. Otherwise, the non-judicial power of sale foreclosure is completed in the following steps.

Texas Foreclosure laws stipulates that the borrower must be informed by the mailing of a letter of demand, that the debtor has twenty (20) days to pay the delinquent payments or foreclosure proceedings will begin. If this grace period expires without the delinquent payments being made, the lender may proceed with the foreclosure. At least 21 days before the sale, a notice must be filed with the county clerk, mailed to the borrower at the last known address, and posted on the county courthouse door.

All Texas foreclosure sales take place on the first Tuesday of any month, sales are conducted even if the Tuesday falls on a legal holiday. All notices must have been posted as required by Texas law. The cash auction is conducted on the county courthouse steps and sale is made to the highest bidder. Bidding is open to anyone and can include the lender, who by canceling out the balance due on the note, or some part of it makes a bid.

Under Texas Foreclosure laws a lender may obtain deficiency judgments, but they are limited to the difference between the fair market value of the property at the time of sale and the balance of the loan in default.

Texas foreclosure laws are a bit more complicated than those in other states and the homeowner needs to be aware of all aspects of the laws governing a Texas foreclosure. The homeowner can use the resources available from ApartmentStores Moving and Relocation to aid in making the right decisions concerning a pending Texas Foreclosure.

Foreclosure is commonly misspelled as Forclosure.

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