Understanding the Foreclosure Process in Texas

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         <p>Many people are losing their homes to foreclosure right now
and it's distressing in so many ways. After years of making mortgage
payments, a foreclosure represents a loss of a family home and all of the
equity built up through the payments. When facing foreclosure it is
important to consult an attorney in Tyler, TX because of the complexity
of the laws.</p>
<p>It's important to understand the Texas foreclosure law from the
homeowner's perspective and from the mortgage holder's perspective. A
foreclosure may not seem fair, but a mortgage is a loan with terms. When
you fail to meet those terms, the mortgage or deed of trust holder has
the right to take the property back. Fortunately, an attorney can often
negotiate an alternative to foreclosure with the mortgage company or
convince the mortgage company to give you more time to find a new
<p><strong>Types of Texas Foreclosures</strong></p>
<p>As the attorney in Tyler, TX will explain there are two types of
foreclosures – judicial and non-judicial.</p>
<p>The judicial foreclosure occurs when the mortgage holder files a
lawsuit requesting a foreclosure. The lawsuit must be filed because the
mortgage agreement or deed of trust doesn't give the mortgager the power
of a sale. The process must follow certain steps that include:</p>
<p>* The mortgage holder or lender must notify the homeowner that past
due payments must be paid within 20 days. This is required by Texas state
law. A lender cannot start foreclosure proceedings without giving the
homeowner an opportunity to pay the delinquent payments.</p>
<p>* After 20 day notice the lender has the right to file a foreclosure
notice as long as it is at least 21 days before the actual sale. The
lender cannot do anything during the 20 days the mortgagee is given to
make up back payments. The lender must file the foreclosure notice with
the Texas county clerk in the county where the property is located. The
homeowner also gets a notice in the mail. A third requirement is that the
foreclosure notice must be posted on the door of the courthouse also.</p>
<p>* Foreclosure sales are only allowed on the first Tuesday of each
month and will take place on the courthouse steps. The sale is actually
an auction and the property must sell for at least the balance that is
<p>The second type of foreclosure is the non-judicial foreclosure. In
this type of foreclosure the mortgage agreement or deed of trust has a
power of sale clause. This clause may name the terms of the sale, the
time and the place. It is like a pre-authorization to sell the property
if the homeowner defaults on the loan.</p>
<p>If the terms or specifics of the time, place and terms of the sale are
not outlined in the mortgage or deed of trust then the same procedure as
that used for a judicial foreclosure is used.</p>
<p><strong>One Step at a Time</strong></p>
<p>It is important to work with an attorney in Tyler, TX if faced with
foreclosure. The attorney may be able to negotiate with the mortgage
company and find a way for you to stay in your home or to gain you more
time for finding a new home.</p>         <!--INFOLINKS_OFF-->

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