The Day of Foreclosure in Texas

May 28
4 min read

A Guide to Texas Foreclosure Sales

In Texas, foreclosure sales are conducted through live public auctions. Investors and prospective buyers can locate foreclosure properties by reviewing the real property records in the county where they wish to purchase property.

You may also find foreclosure listings through:

County real property records• Trustee websites
Local newspapers• Foreclosure listing services

For example, in Harris County, the Daily Court Review publishes a monthly foreclosure list.

When Do Foreclosure Sales Take Place?

Texas foreclosure sales are generally held on the first Tuesday of each month between 10:00 a.m. and 4:00 p.m. at the county courthouse or another designated location.

The trustee or constable conducting the sale will typically provide instructions regarding bidding procedures and auction rules.

Registration Requirements

Registration requirements vary by county.

In Harris County, bidders can generally register on the morning of the sale. Upon registration, bidders receive a bidder number that is used during the auction.

Before attending an auction, always verify the registration procedures for the specific county where the sale will occur.

How Bidding Works

Bidding often starts at the amount owed on the loan, including:

Principal balance• Interest
Attorney’s fees
Foreclosure expenses
Other related costs

Winning bidders must typically provide:

Full legal name
Address
Taxpayer identification number
Government-issued photo identification
LLC information if purchasing through a business entity

Payment Requirements

Payment is generally due immediately or within a reasonable period after winning the auction.

Most trustees require:

Cashier’s checks
Certified checks
Funds payable to the trustee, constable, or bidder

If the successful bidder fails to pay on time:

The bidder may face penalties
The property may be re-auctioned

Properties Are Sold “As Is”

Foreclosure properties are sold without warranties or guarantees.

Buyers should understand:

No seller’s disclosures are provided
Property condition may be unknown
Repairs may be required
Occupancy status may be unknown

Additionally, it may take time after the sale for the trustee’s deed to be recorded and delivered.

Rescission of Foreclosure Sale

Although uncommon, foreclosure sales may be rescinded within 15 days after the sale.

Common reasons include:

Errors in the foreclosure process
Loan reinstatement before the sale
Pending probate proceedings
Pending bankruptcy cases with automatic stays

When a foreclosure sale is rescinded:

The bidder generally receives a refund
The bidder may challenge the rescission within 30 days

Understanding Redemption Periods

A redemption period allows a former owner to reclaim property after foreclosure under certain circumstances.

The redemption period varies depending on the property type and lien involved.

Tax Foreclosure Redemption

For agricultural and homestead properties:

Redemption period is generally two years

The purchaser may be entitled to:

The purchase price• 25% premium during the first year
50% premium during the second year
Certain insurance costs
Qualified repair and improvement expenses

For other properties:

Redemption period is generally 180 days
Purchasers may receive the purchase amount plus a 25% premium

HOA Foreclosure Redemption

For HOA assessment lien foreclosures:

Homeowners generally have 180 days to redeem the property
Lienholders may have 90 days to redeem

Keep in mind that HOA liens are often subordinate to:

Mortgage liens
Mechanic’s liens

As a result, those superior liens may remain attached to the property.

Post-Foreclosure Evictions

After a successful foreclosure purchase, the buyer becomes the property’s owner and receives title through a trustee’s deed.

If occupants remain in the property, the purchaser generally becomes their landlord.

Step 1: Notice to Vacate

The new owner must typically provide a written 3-day Notice to Vacate pursuant to the Texas Property Code.

Notice is commonly sent by certified mail.

Step 2: File an Eviction Lawsuit

If the occupants do not vacate, the owner may file a Forcible Detainer Action in the Justice Court where the property is located.

Step 3: Obtain a Writ of Possession

If the owner prevails:

The court issues a judgment for possession
The owner requests a Writ of Possession
The constable posts notice at the property
Occupants may be physically removed if necessary

Personal property left behind may also be subject to removal according to applicable laws.

Appeals Can Delay the Process

Occupants may appeal the eviction judgment and post the required bond, which can significantly delay possession.

Stopping a Foreclosure Sale

Property owners may challenge or delay foreclosure sales under certain circumstances.

Common reasons include:

Incorrect payoff calculations
Improper notice procedures
Defects in the foreclosure process
Loan reinstatement or cure

Temporary Restraining Orders (TROs)

One legal strategy may involve seeking a Temporary Restraining Order (TRO).

Potential grounds include:

Wrongful foreclosure claims
Proof the default has been cured
Pending probate proceedings
Active bankruptcy proceedings
Military service protections
Property ownership disputes

A TRO generally lasts up to 14 days but may be extended through additional court orders.

In some cases, this provides sufficient time to resolve the issue causing the foreclosure.

Final Thoughts

Texas foreclosure sales can present excellent opportunities for investors and homebuyers. However, they also involve unique risks, legal requirements, and procedural challenges.

Understanding auctions, redemption rights, post-foreclosure evictions, and foreclosure defenses can help buyers and property owners make informed decisions.

If you have questions regarding Texas foreclosure sales, foreclosure defense, redemption rights, or post-foreclosure issues, contact Texas Real Estate & Business Law Firm PLLC for guidance.