What Happens if My House Sells for Less Than I Owe?

If your home sells at foreclosure auction for less than your remaining mortgage balance, Texas law allows the lender to pursue a deficiency judgment against you for the difference — and they generally have up to 2 years after the sale to do it.

You Have a Defense

If the home sold for less than it was really worth, you can ask the court to reduce what you owe to reflect its true fair market value. This is very different from a short sale, where the deficiency amount is often (though not always) waived as part of the lender's approval.

If you're facing foreclosure and worried about being on the hook afterward, raise this specific question before the sale happens, not after.