What happens after a foreclosure sale in Texas

What happens after the sale in Texas, in order

1. Trustee's deed and no right to buy back

   Right after the sale

   The trustee gives or records a deed to the winning bidder. After an ordinary mortgage sale, Texas does not give you a right of redemption. Limited buy-back rights exist only for some other sales, such as property tax sales and certain HOA and condo assessment foreclosures.

   Tex. Bus. & Com. Code § 22.005; Tex. Prop. Code §§ 82.113(g), 209.011

2. Possible rescission of the sale

   Within 15 calendar days after the sale

   The lender or trustee may undo the sale if, for example, the notice rules were not met, you cured before the sale, you and the servicer had a written cure agreement, or a bankruptcy stay was in effect. If any of these happened, contact the servicer, the trustee and a lawyer right away. If it is rescinded, any surplus you received must be returned.

   Tex. Prop. Code § 51.016

3. Notice to vacate

   At least 3 days before an eviction case, unless your loan papers set another period

   The notice can be mailed, handed to someone 16 or older in the home, or left inside in a plain place. Use this time to plan your move or talk with the new owner about more time.

   Tex. Prop. Code § 24.005(b), (f-3)

4. Eviction case in justice court

   Response within 4 days of service if the owner asks for summary disposition; trial 10 to 21 days after filing if facts are disputed

   The justice court decides only who gets possession, not whether the foreclosure was valid. A claim that the sale was wrongful has to be brought in a separate case in another court.

   Tex. Prop. Code §§ 24.004(c), 24.005106

5. Appeal and writ of possession

   Appeal within 5 days of judgment; writ no sooner than the 6th day

   You can appeal to county court by filing a bond, cash deposit or statement of inability to pay costs within 5 days. Otherwise, the officer posts a 24-hour warning, then can remove you and place your belongings outside.

   Tex. Prop. Code §§ 24.005107, 24.0061

6. Excess proceeds

   After the trustee pays the foreclosed loan, sale costs and junior liens

   The trustee must keep sale money in a separate account and make reasonable attempts to find the people entitled to it. The trustee's fee and attorney's fees can be paid from the excess, and the trustee may instead deposit the money with a court. Write to the trustee on your notice of sale and ask for an accounting.

   Tex. Bus. & Com. Code § 22.006; Tex. Prop. Code § 51.0075(f)

7. Deficiency lawsuit

   The lender has 2 years after the sale to sue

   If the sale price was less than you owed, the lender can sue for the rest. You can ask the court to set the home's fair market value on the sale date, and if it is higher than the sale price, you get credit for the difference.

   Tex. Prop. Code § 51.003

The three questions that matter after a sale

Common questions in Texas