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Foreclosures – Lender Representation in Austin, Texas
If you are a lender or noteholder and are no longer receiving payments from the borrower, it may be time to initiate the foreclosure process. Our attorneys assist lenders in foreclosing on delinquent borrowers in Austin, Texas and the surrounding areas.
For lenders who hold a deed of trust, the foreclosure process is fairly quick and straightforward. However, it is vital that all steps in the process are followed meticulously and all timelines strictly obeyed in order to ensure that the foreclosure is legally valid. The Daves Law Firm has the experience and knowledge to help you achieve a successful outcome.
Steps in a Deed of Trust Foreclosure
If your attempts to collect are no longer working—such as calls to the borrower, demand letters, acceptance of partial payments, or failed temporary payment plans—it is time to start the foreclosure process.
The non-judicial foreclosure process in Texas is relatively quick, and efficient. It does not make use of the courts or judicial process but rather, is based upon the sale pursuant to a buyer’s deed of trust.
Step One (1)
Obtain and review your loan documents.The first thing we do is review your loan documents. Because the Texas Property Code provides only minimum requirements for conducting a nonjudicial foreclosure, it is necessary to determine whether there are any additional requirements in the loan documents that must be met before foreclosing on the property.
Step Two (2)
Send the borrower Notice of Default and Intent to Accelerate (first notice). To initiate the foreclosure process, we first send the borrower a Notice of Default and intent to accelerate. This letter notifies the borrower that they are in default and gives them an opportunity to cure. Texas law sets a minimum period of 20 days to cure default under a deed of trust on real property used as the borrower’s residence. There may be additional notice requirements in the loan documents. If the borrower fails to cure the delinquency within this timeframe, you the lender may ‘accelerate’ the debt, meaning that the entire unpaid amount of the debt (not just the delinquent amount) is now due and owing.
Step Three (3)
Send the borrower a Notice of Sale and Acceleration of Debt (second notice). This letter notifies the borrower that the property going to be sold and that the debt has been accelerated. The entire amount of the loan is now due.
At any stage before the foreclosure sale, the parties can enter a reinstatement agreement and the borrower can avoid foreclosure.
Step Four (4)
Post and file the Notice of Sale. At least 21 days before the foreclosure sale, notice of the sale must be (1) posted at the courthouse door of each county where the property is located, (2) filed with the county clerk of each county where the property is located, and (3) served by certified mail on each person obligated to pay the debt.
Step Five (5)
Conduct the Foreclosure Sale. The final step is for us (as trustee or substitute trustee) to conduct the foreclosure sale. The foreclosure sale is a public auction held between 10 a.m. and 4 p.m. of the first Tuesday of the month at the county courthouse. We usually read a copy of the public notice at the steps of the courthouse and open the auction for bids. You will have the opportunity to bid for the property. If there are no bidders, you will receive the property.
Step Six (6)
Post-sale Procedures. After the sale there are certain post-sale procedures, such as providing a receipt and deed to the winning bidder and disbursement of funds.