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.
Quick flashcard
What does Foreclosure mean on the Texas real estate exam?
Answer: The process by which a lender forces the sale of property after default. Texas usually uses non-judicial foreclosure under a deed of trust.
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Foreclosure definition
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.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Financing & Settlement (7 of 80 National)
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Try 5 free questionsThis 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.