What Are My Rights as a Homeowner in Foreclosure?

Texas law provides several protections for homeowners facing foreclosure. Understanding them is the first step to protecting yourself and your family.

Right to Notice of Default

Before accelerating your loan, your lender must send a Notice of Default by certified mail, giving you at least 20 days to cure.

Right to 21 Days' Notice of Sale

The Notice of Sale must be mailed to you, filed with the county clerk, and posted at the courthouse at least 21 days before the sale, including the date, time, and place.

Right to Surplus Funds

If your home sells at auction for more than what you owe, you are entitled to the surplus funds — don't leave money on the table.

Right to Challenge the Foreclosure

If your lender didn't follow proper procedures, you can challenge the foreclosure in court, commonly on grounds of improper notice.

Protection From Unfair Deficiency

If the auction doesn't cover what you owe, your lender can sue for the difference for up to 2 years — but you can ask the court to reduce what you owe if the home sold for less than its true fair market value.

Texas Homestead Protection

Your homestead can only be foreclosed for a few specific debts: your mortgage, property taxes, a home equity loan, a home improvement lien, HOA dues, or a court-ordered owelty lien. Ordinary creditors cannot take your homestead.

Right to Notice Before Eviction

Even after a sale, the new owner must give at least 3 days' written notice to vacate and win a court eviction. No one can change your locks or put your belongings out without going through the court.

Servicemembers Civil Relief Act

If you or your spouse are active duty military, the SCRA provides additional protections, including a cap on mortgage interest rates.