Texas homeowners may be surprised to learn a Dallas foreclosure may be processed in just 27 days. Compare this to New York where the foreclosure process period is typically 445 days and it can become easy to see how Texas has some of the fastest foreclosure processing times in the nation. Homeowners in Dallas, Texas who are facing financial hardship should consider learning about the Dallas foreclosure process as soon as possible in order to have the best opportunity at finding a favorable resolution.
Dallas Foreclosure Process
The Dallas foreclosure process may vary to some degree from homeowner to homeowner, but in most cases the foreclosure will be processed out of court as a non-judicial foreclosure. Non-judicial foreclosures may occur when a power-of-sale is included in the mortgage or deed of trust.
When a non-judicial foreclosure in Dallas, Texas occurs, mortgage lenders are usually required to send a letter to the homeowner in default allowing at least 20 days to resolve the mortgage delinquency. If the loan is not brought current within 20 days, the mortgage lender may choose to initiate the foreclosure process by sending a second letter to the defaulted homeowner stating how the loan has been accelerated and a foreclosure sale date has been scheduled to recover the unpaid mortgage.
With a foreclosure sale date scheduled, the mortgage lender may post a notice of sale at a county courthouse and file a foreclosure notice with the county clerk. Foreclosure notices filed with the county clerk are commonly filed at least 21 days before the foreclosure sale date. Mortgage lenders are also likely to send a copy of the notice of sale to the borrower at least 21 days before the foreclosure sale.
Foreclosure sales in Texas typically occur on the first Tuesday of the month between 10 a.m. and 4 p.m. With a Dallas foreclosure sale, the foreclosed homes are usually sold to the highest bidder who must pay in cash. Because there is not usually a redemption period in Texas, it is critical for homeowners to try and resolve the foreclosure before the final foreclosure sale.