Foreclosure
The process by which a lender forces the sale of property after default. Texas usually uses non-judicial foreclosure under a deed of trust.
Foreclosure is how a lender enforces its lien after the borrower defaults. Texas relies mainly on non-judicial foreclosure: the trustee named in the deed of trust exercises the power of sale and sells the property at public auction after the required notices, without a lawsuit. A judicial foreclosure through the courts is also available but is less common.
A Texas non-judicial sale occurs on the first Tuesday of the month at the county courthouse, after notice of default, an opportunity to cure, and a posted and filed notice of sale.
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- Non-Judicial Foreclosure
Foreclosure conducted by the trustee under a deed of trust's power of sale, without a court action, on the first Tuesday of the month in Texas.
- Deed of Trust
The Texas security instrument that pledges real property for a loan and lets a trustee sell it non-judicially if the borrower defaults.
- Trustee (Deed of Trust)
The neutral third party named in a Texas deed of trust who holds the power of sale and conducts a non-judicial foreclosure if the borrower defaults.
- Deficiency Judgment
A court judgment against a borrower for the loan balance still owed after a foreclosure sale brings less than the debt.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.