Trustee Sales (Bank and Mortgage Foreclosures)
Trustee Sales are published in our Foreclosure Posting List.
Texas is a non-judicial foreclosure state. This means a bank or
mortgage company only needs follow the requirements of the
Texas Property Code 51.002 and is not required to obtain the
permission of a state court to foreclose (with the exception of
Home Equity Loan foreclosures).
If the property is homesteaded, the bank must provide the
defaulting homeower with a 20 day “pre-foreclosure” period
noted by advising the owner with a default (or demand) letter.
Such notices of default are not public filings in Texas.
If the property is non-homesteaded or when the above noted 20
days expire in the case of homesteaded property, the bank must
notify the defaulting homeowner that his property will foreclose
within 21 days, on the first Tuesday of the following month. A
notice of foreclosure must also be posted in county records.
If the owner does NOT meet the demands of the lienholder by the
scheduled foreclosure sale, the property is sold at public auction.
Mortgage foreclosures are sold by Trustees, parties appointed
by the bank to conduct the sale. The auction can only occur between
the hours of 10:00 am and 4:00 pm of the first Tuesday of the month.
Registration is not required for Trustee sales.
With few exceptions, the opening bid amount is the loan balance,
plus Trustee fees, interest on the arrearage, and other fees
associated with the Trustee’s conduct of the sale.
By law, the only acceptable form of payment is cash or cashier’s
check
However, unlike tax foreclosures, mortgage foreclosures have no
redemption period, with the exception of certain types of
non-judicial maintenance fee foreclosures.