• Judicial Foreclosure Available: Yes
• Non-Judicial Foreclosure Available: Yes
• Primary Security Instruments: Deed of Trust, Mortgage
• Timeline: Typically 60 days
• Right of Redemption: No
• Deficiency Judgments Allowed: Yes

In Texas, lenders can foreclose on a property quickly and have both judicial and nonjudicial methods available. Lenders can send out a notice of default as soon as 20 days after a missed payment. Notice of sale can follow very shortly thereafter. It is possible for homeowners in Texas to lose their homes through foreclosure within 60 days of a missed payment. There is no right of redemption in Texas, meaning that the former homewoner is not allowed to buy back his home after finalization of the foreclosure.  If the foreclosure sale of a home does not generate enough money to cover the amount of the defaulted loan, a deficiency judgement can be plced against the former homeowner for the remaining amount.

Of course the best way to avoid foreclosure is to get caught up on the payments and pay any fines and penalties that have acrued. If you have fallen behind on your payments, this isn't likely to be a possibility. If you can't bring your account current with one lump sum payment, try contacting your lender.

By contacting your lender, you may be able to work out a payment plan that will get you current on your loan. Depending on the circumstances that led to your falling behind on your payments, the lender may consider a forebearance or a short-term interest rate adjustment. A forebearance is when the lender suspends payments for a short time. The terms of the forebearance would be at the discretion of the lender. More likely than a forebearance would be a short-term lowering of the interest rate. A lowered interest rate brings down the monthly payment, giving the homeowner to get current on the loan. The interest rate would go back up on a predetermined schedule. Your lender may also consider taking the full amount owed in a series of payments instead of one lump sum.

You can also contact a Housing and Urban Development (HUD) representitive and discuss your situation.  A HUD representitive can help you develop a payment plan that would bring you current.  The representitive may also be able to contact your lender on your behalf if you are having trouble working out a payment plan with the lender yourself.

A popular option for mortgage problems used to be refinancing.  This is when a new loan is written in place of the original loan witheither a lower interest rate, cash taken from the equity in the home, or a new term set for the loan.  The lender who refinances the home does not have to be the same one that gave you the original loan on the home.  There are some lenders in Texas that are trying to work out loans for homeowners who are struggling to make ends meet.

Refinancing isn't always an option, especially with the recent turn in the housing market.  Many times the circumstances that led a homeowner to fall behind on the loan in the first place make them ineligible for refinancing.  Another option has recently gained favor for helping struggling homeowners avoid foreclosure - a home loan modification.  This is a renegotiation of the original loan with the original lender.  The lender will require certain docmentation, like a hardship letter, pay stubs, and W-2s in order to determine whether to grant a home loan modification.  This gives the homeowners new terms on their loan that are easier to manage and will help them avoid foreclosure both short term and long term.  There are companies available to help homeowners negotiate home loan modifications with their lenders.