In the state of Texas, there is no opportunity to for a homeowner to redeem their property after a foreclosure sale. That’s why it’s important that homeowners facing foreclosure act quickly to stop foreclosure before their home is on the auction block.
Before a property can go to foreclosure, the lender sends a notice to the borrower telling them that they have about 20 days to pay up the delinquent portion of their loan. It’s at this point that borrowers should seriously consider bankruptcy if they know they want to keep their home but they cannot afford to pay the delinquent balance immediately. Failure to pay the delinquent balance of the home loan at this point will most likely lead to an acceleration of the loan. This means that the bank will make the entire balance of the loan due immediately and sue the debtor for the entire balance. If the debtor receives a letter saying that their loan has been accelerated and that the lender is scheduling a foreclosure sale, it is in their best interest to consider filing a bankruptcy because only bankruptcy or payment in full can stop the foreclosure process at this point. If the debtor does not file bankruptcy or pay the balance of the loan after receiving notice that the lender is scheduling a foreclosure sale, the property will proceed to the auction block and be sold out from under them. Once that property is sold, the borrower will have no claim to it and unlike some other states there is no grace period after the foreclosure sale for the borrower to redeem their property by paying in full even if they could do so.