Foreclosure
General Information
Note Foreclosure procedures may be impacted by the COVID-19 pandemic. Please see the Homeowners page on the COVID-19 & Texas Law research guide for current information related to COVID-19 and foreclosure.
About This Guide
This guide was created to provide information about the state and federal laws on foreclosure. Below you will find links to the text of Texas and federal law governing mortgages, resources that explain these laws in “plain English”, and information on who to contact if you are facing foreclosure.
Texas and Federal Law
Below you will find references to areas of the Texas Property Code and federal law that govern foreclosure and issues related to foreclosure. If you find these statutes difficult to understand, you may want to view the “plain English” resources on this page or speak to an attorney.
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Texas Property Code, Chapter 51
Discusses provisions generally applicable to liens. -
Section 347.356 of the Texas Finance Code
Discusses requirements for action to repossess, foreclose, or accelerate payment of entire debt on a manufactured home. -
Chapter 13 in Title 12 of the U.S. Code
This chapter of the United States Code deals with national housing. Several sections were amended by the Foreclosure Prevention Act of 2008.
Explained in “Plain English”
Because Texas and federal law may not be easy to understand, below you’ll find a collection of resources that help to explain the law in “plain English.”
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A Homeowner’s Rights Under Foreclosure [PDF]
This publication, written in 2009, from the Texas A&M University Real Estate Center discusses Texas laws on home foreclosures and the foreclosure process focusing on ways homeowners can protect their homes from improper foreclosures. -
Avoiding Foreclosure from the Federal Department of Housing and Urban Development
This page from HUD discusses options available to homeowners to help them avoid foreclosure. -
This publication from the Texas Young Lawyers Association provides an overview of Texas foreclosure law.
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Facing Foreclosure? (Federal Trade Commission)
This page from the FTC discusses scams that homeowners’ might encounter while facing foreclosure as well as where to go for help. -
A Texas real estate attorney provides this in-depth look at the foreclosure process in Texas.
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Foreclosure legal resources on Texas Law Help
This page from Texas Law Help contains all of their foreclosure legal resources. -
This page from the publisher Nolo provides links to summary of Texas foreclosure laws and articles about Texas foreclosure law.
Who Can I Contact?
Please include any information on guide specific state agencies or organizations in this box.
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This hotline, run by the nonprofit Homeownership Preservation Foundation, is staffed around the clock by housing counselors who can explain state and Federal law as well as discuss homeowners’ options with them.
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HUD: Talk to a Housing Counselor
This hotline allows you to speak with a HUD counselor who can answer questions about buying a home, renting, default, foreclosure avoidance, credit issues and reverse mortgages. -
This website from the federal government was designed to help homeowners avoid foreclosure through a variety of programs including lower interest rates and lower monthly payments.
E-Books from the Texas State Law Library
If you have a library account in good standing, you can check out an OverDrive e-book title or access our remote databases. Don’t have a library account? Texas residents can register for a library account from home! Learn more about how to register from home.
Below are e-book titles that may help you with your research on foreclosure.
Houston Lawyer Files TRO Lawsuit Concealing Recent Judgment and Altering Client’s Surname
Our legal blog uncovers foreclosure defense lawyer’s attempt to stop home sale by omitting key facts with agreement of homeowner: It worked.
Swan’s Swimming in Bankruptcy and Foreclosure Proceedings in Federal Court
Veronica Swan’s at the Water’s Edge with her Humble home, and now her bankruptcy attorney is appearing in her removed state case.
Warning: Lone Star Lawyer Marcella Hagger is a Creditor Rights Attorney and Foreclosure Defense Lawyer
The Controversial Path of Bounty Hunter and Lawyer Marcella Hagger: She Navigates Both Sides of Foreclosure with Changing Allegiances.
Books at the Texas State Law Library
Below are some of the library resources that can provide further guidance on this topic. The Texas State Law Library has many other resources in addition to the highlights we present below. Please call us at (512) 463-1722 if you have any questions about these materials.
Facing Foreclosure?
Scammers are targeting people having trouble paying their mortgages.
Some claim to be able to “rescue” homeowners from foreclosures, while others promise to modify your loan – for a fee.
The Federal Trade Commission, the nation’s consumer protection agency, wants you to know how to avoid scams that could make your housing situation go from bad to worse.
Signs of a Foreclosure Rescue Scam
If you are in danger of foreclosure, AVOID any individual or company that:
Requires a fee in advance
Don’t pay any business, organization, or person who promises to prevent foreclosure or guarantees you a new mortgage. So-called “foreclosure rescue companies” claim they can help save your home, but they can’t really do that. They’re just out to make a fast buck. Some may ask for hefty fees in advance – and then, once you pay, stop returning your calls. Others may string you along before disclosing their charges. Cut off all dealings if someone insists on a fee in advance.
Promises to find mistakes in your loan documents that will force your lender to cancel or modify your loan
Cancelling your loan won’t allow you to stay in your home, and in most cases, lenders are not required to modify your loan to make it more affordable simply because of mistakes in your loan documents.
Guarantees to stop a foreclosure
Don’t do business with anyone who offers an “easy out” of foreclosure. These kinds of claims are the tell-tale signs of a foreclosure rip-off:
“We can stop your foreclosure!”
“97% success rate!”
“Guaranteed to save your home!”
Advises you to stop paying your mortgage company or stop talking to your mortgage company
Some scammers offer to handle financial arrangements for you, and then pocket your payment instead of sending it to your mortgage company. Send your mortgage payments ONLY to your mortgage company.
Scammers may advise you not to communicate with your mortgage company.
That’s a bad idea because you may not find out until it’s too late that the scammer has done nothing for you, that your mortgage company was willing to modify your loan, or even that foreclosure is just days away!
Help is Available
Contact your mortgage company as soon as possible if you’re having trouble paying your mortgage or if you get a foreclosure notice. Keeping the lines of communication with your mortgage company open is critical.
Call 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). This national hotline – open 24/7 – is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOW Alliance of mortgage industry members and HUD-certified counseling agencies. For free guidance online, visit www.hopenow.com.
And for free information about the President’s plan to help financially strapped homeowners in mortgage misery, visit www.makinghomeaffordable.gov
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