How close to a foreclosure sale can I still sell my house in Texas?

If you have a foreclosure notice in your hand, the first thing to know is that the date on it is not the end of your choices. Texas law gives you a window to sell, and plenty of homeowners use it.

How the Texas foreclosure timeline works

Most home loans in Dallas-Fort Worth are foreclosed outside of court, under the power of sale in your deed of trust. For a house you live in, the steps usually look like this (Texas Property Code § 51.002):

1. Notice of default. Your servicer has to tell you in writing that you are behind and give you at least 20 days to catch up.
2. Notice of sale. At least 21 days before the auction, the notice is posted at the courthouse, filed with the county clerk, and mailed to you by certified mail.
3. The sale. Foreclosure auctions happen on the first Tuesday of the month, between 10 a.m. and 4 p.m., at the spot your county has set aside.

If a sale gets postponed to a later month, the lender usually has to send a new notice, which can buy you a few more weeks.

When it is too late

Once the auction is over, the house belongs to whoever bought it. Texas does not give homeowners a right to buy the house back after a regular mortgage foreclosure. (HOA and property tax foreclosures are different, and they do have redemption periods.)

So the real deadline is not the sale date. It is the last day a sale can close and send the lender its money before that Tuesday morning.

What a sale before foreclosure needs

• A payoff letter from your servicer. It shows exactly what is owed, including late fees and the foreclosure costs added so far. We can request it with your written permission.
• A title company. Title checks for other liens, like taxes, an HOA, or a judgment, and pays everyone off at closing.
• A buyer who can close fast. A buyer using a bank loan usually needs 30 days or more, which is often more time than you have left.

Your options, depending on how much time you have

More than a month out. You have the most choices. A loan modification, repayment plan, or reinstatement may be possible, and listing with an agent can still work. Call your servicer and get every answer in writing.

A few weeks out. Listing gets risky because of financing and appraisal time. A cash sale is often the safer route. In some cases we can bring the missed payments current as part of buying the house.

Days out. Call right away. We need the address, a copy of the notice, and permission to talk with your servicer. If the numbers work, we can often close within about three business days. A bankruptcy filing can also stop a sale, but talk with a bankruptcy attorney before you choose that path.

Things we have learned helping homeowners

• Get it in writing. Write down who you talked to at the bank, when, and what they promised.
• Don’t wait on a promise. “You’re under review” does not always stop the sale date. Ask the servicer directly whether the sale is postponed.
• Watch for equity skimmers. Be careful with anyone who asks you to sign the deed over before a closing at a title company. With us, every sale closes at a title company.

This is general information, not legal advice. For your specific situation, talk with a real estate attorney or a HUD-approved housing counselor.

If you are facing a foreclosure date in Dallas-Fort Worth, tell us about your house or call (972) 487-7653, and we’ll tell you honestly whether we can close in time.