New homeowners in Texas rarely learn about the foreclosure process because they never expect to experience it. But, when you’re in foreclosure, the unknowns can be scary. One of the major unknowns is how long the entire process will take.
Every state handles foreclosures differently, which is why the number varies so much by state. In Texas, the types of foreclosure include expedited, judicial, and non-judicial. Most foreclosures are non-judicial types. This means court approval isn’t required and speeds up the process. Many Texas foreclosures take 160 days. This is much faster than the national average of 922 days in foreclosure for the second quarter of 2021.
It’s important to note that while 160 days is the average in Texas, the process can be faster or slower than this depending on the policies of the lender, whether the homeowner attempts to stop foreclosure and what type of foreclosure happens.
Foreclosure doesn’t happen all at once. The process begins with the first missed payment from the homeowner. To avoid foreclosure, homeowners can contact the lender as soon as possible. Many lenders are willing to work with homeowners on processes like refinancing or changed payment schedules to get the payment process out of default and avoid foreclosure.
After a missed payment, homeowners can expect a notice of default from the lender. Unfortunately, this often doesn’t happen until there are multiple missed payments.
If the homeowner and lender don’t work out terms on the mortgage, and a non-judicial foreclosure happens, then the lender files a notice of trustee’s sale. The property then goes up for auction. If the property fails to sell at auction, the lender will put the home on the real estate market. Once a new owner buys the house, the former owner can expect a notice of eviction.
This timeline may also include attempts to stop the foreclosure process. For example, a homeowner may sue the landlord. Other instances may include mortgage reinstatement or refinancing. This can heavily impact how long a foreclosure in Texas takes.