In Non Judicial States like Texas, foreclosure is generally a three-step process.
(Exception: If you have a home equity loan, home equity line of credit, a tax lien transfer loan, or owe assessments to a homeowner’s association, a court order is usually required before your property can be posted for sale. In some instances, an order is also required to foreclose on a reverse mortgage. A lawsuit must be filed if a government entity is trying to foreclose, e.g. for property taxes, a condemned property, etc.).
Notice of Default (Demand Letter). By law, lenders and servicers are required to send a written notice allowing you 20 days to “cure” (meaning to pay in full the amount you owe) to bring the defaulted loan current. Some loans increase this period to 30 days (most FHA, VA and home equity loans).
Notice of “Foreclosure” Sale Filed, Posted, and Mailed. Next, the law requires at least 21 days’ written notice of the date the foreclosure sale (auction) is to take place. The 21 days begin from the date the notice is mailed, not the date you receive it. Failing to collect your certified mail will not stop or invalidate the foreclosure sale. The foreclosure notice is also posted at the courthouse and filed with the county clerk.
Foreclosure Sale. Foreclosure sales are held at the county courthouse on the first Tuesday of each month. Anyone may bid. After the auction, you do not have a right to buy back your property from the new owner unless it is being sold by a government entity, a tax lender, or for nonpayment of homeowner’s association fees. There are time limits involved, and in most cases, you must pay a redemption fee.