Areas Served Understanding Foreclosure REO FAQ REO Glossary

Understanding Foreclosures

Texas has the one of the highest foreclosure rates in the nation.  This is because we have the non-judicial foreclosure process and this is the process most commonly used for foreclosures in the state.  

The two primary types of foreclosure procedures are judicial and non-judicial. Judicial procedures are followed by states that use mortgages as the security instrument for property loans. Non-judicial procedures are used by states that use deeds of trust as the security instrument. Here is a general timeline for non-judicial proceedings:
Calendar Description
After approx 90 days without borrower making a mortgage payment Request to initiate foreclosure received by TD. Default documents prepared and sent for signature/recording (Substitution/Notice of Default). TSG ordered from title company.
Start (day 1) Notice Of Default recorded with County Recorder.
Within 10 business days Notice of Default and Important Notice are mailed to trustor/new owner on the Deed of Trust at the property address, address on Deed of Trust and any other addresses known to lender/trustee. Notice is also sent to any parties with a recorded Request for Notice as required under Section 2924 (b) (1).
Within 1 month TSG is received and reviewed. Notice of Default mailed to all entitled parties with an interest in the property (ie, new owners/junior lien holders) as required under Section 2924 (b) (1).
3 months after recordation of Notice of Default Notice of Trustee's Sale is prepared and sent for publication.
25 days prior to Sale Date  Send Notice Of Sale to IRS (if applicable).
20 days prior to Sale Date  Begin publishing Notice Of Sale in an adjudicated newspaper. (must run once a week for 3 consecutive weeks).
20 days prior to Sale Date  Post the Notice of Sale on the property itself. Most posting services will photograph the posting location for your records.
20 days prior to Sale Date  Mail Notice of Sale to the trustor and all other parties to which the Notice of Default was mailed as required under Section 2924 (b) (1).
14 days prior to Sale Date The Notice of Trustee's Sale is recorded in the County Recorder's office.
5 days prior to Sale Date The borrower's right to reinstate expires.
On sale Date The property sale is postponed to a new sale date or the property is sold to high bidder, or the property reverts to the foreclosing beneficiary.
(Timeline is courtesy of TD Service Company, www.tdsf.com).
DISCLAIMER:  No information provided on this web site is to be viewed as legal advice or as an official description of the judicial or non-judicial process. These are general descriptions and are not intended to apply to all situations in all states. You are advised to seek professional legal help in any default proceeding. 

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