Selling a House in Foreclosure in Texas
Yes, but Texas is one of the fastest foreclosure states in the country. The lender has to give you at least 20 days to cure the default, then at least 21 days' notice of the sale, and the auction happens on the first Tuesday of the month at the county courthouse. There's no right to buy the house back after a standard foreclosure, so a sale you control has to close before that Tuesday. Home equity loans are different and need a court order first. If the lender wants a deficiency, it has to sue within two years, and you can claim credit for the home's fair market value.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
For Texas homeowners behind on the mortgage in Harris, Travis, Williamson, Bell or any other county. General information, not legal advice. Talk to a Texas foreclosure attorney or HUD-approved counselor right away.
The First-Tuesday Timeline
- 1Four months behind
Federal rules generally require more than 120 days of delinquency before foreclosure starts.
- 2Notice of default
By certified mail, with at least 20 days to cure. (Tex. Prop. Code § 51.002)
- 3Notice of sale
At least 21 days before the sale, mailed to you, posted at the courthouse and filed with the county clerk.
- 4First Tuesday
The auction happens between 10 a.m. and 4 p.m. at the courthouse.
- 5Eviction
The buyer can file in justice court if you're still there.
From the notice of default to the auction can be about six weeks.
Home Equity Loans Are Different
If the loan is a Texas home equity loan or HELOC, the lender has to get a court order before it can sell, using an expedited process. You get a chance to respond, and the lender can't pursue a deficiency on that kind of loan. Check your loan papers to see which you have.
Moves to Make Before the Sale
- Cure within 20 daysReinstating during the cure period stops the process; your deed of trust may allow more time.
- Loss mitigationA complete modification application, early, gets the most protection.
- Sell before first TuesdayThe payoff comes out of closing and the equity stays with you.
- Short saleThe lender approves less than the balance.
- Deed in lieuReturn the house with the shortfall forgiven in writing.
- BankruptcyThe automatic stay halts the auction.
Free help: CFPB – Find a Housing Counselor and TexasLawHelp.org. Servicemembers near Fort Hood have added federal protections.
Want a Number to Compare Against?
Tell me which first Tuesday you're facing and a little about the house. You'll see an as-is figure next to your payoff, plus my honest take on curing the default or listing instead.
No Redemption After a Standard Foreclosure
Texas doesn't give homeowners a right to buy the house back after a mortgage foreclosure sale. The exception is an HOA foreclosure, where the owner generally gets 180 days to redeem. (Tex. Prop. Code § 209.011) For a mortgage, the first Tuesday is the end of the line.
In Texas, the clock runs out on a first Tuesday. If you want to protect your equity, a sale needs to close before that date.
The Deficiency Rules
If the auction doesn't cover the debt, the lender has two years to sue for a deficiency. You can ask the court to credit the home's fair market value if it was higher than the sale price. (Tex. Prop. Code § 51.003) Home equity loans don't allow deficiencies at all.
Surplus From the Sale
If a third party bids more than the debt and the liens behind it, the excess belongs to you. Ask the substitute trustee in writing where it's being held, and be careful with surplus finders.
Count Your Equity
Write down the payoff, back interest, fees, the trustee's charges, a second lien, HOA dues and delinquent taxes. Hold that against a realistic price for the house. Whatever's left is what a first-Tuesday auction can erase.
Should You List or Sell As-Is?
With real equity and a house that shows well, listing can bring more, but a buyer's loan usually needs 30 to 45 days, which often doesn't fit the Texas schedule. Tell the agent the sale date at your first meeting.
When the first Tuesday is close or the house won't pass a lender's inspection, an as-is buyer can often close in time. If you'd rather skip the whole production, sell it as-is to a real estate investor: no open houses, no repair negotiations after inspection, no hauling furniture in the Texas heat, and a closing date you set. Sell to Dennis Buys Houses and the clean-out is our problem, not yours. Take what you want and leave everything else. If we run across anything personal or valuable, we'll make sure it gets back to you.
Taxes and Estates
Delinquent property taxes are a separate track with steep penalties and their own sale. (See Selling a House With Delinquent Property Taxes in Texas.) If the borrower died, someone with authority has to sign. (See How to Sell a House in Probate in Texas.)
Watch for Rescue Scams
Notices of sale are filed publicly, and the mail starts right away. Walk away from upfront fees, anyone telling you to ignore your lender, "deed it over and rent it back" offers, and anyone after a piece of your surplus.
Mistakes to Avoid
- Letting the 20-day cure period pass without acting.
- Expecting to redeem after the sale.
- Not checking whether it's a home equity loan.
- Hiring an agent with only days left.
- Signing a deed in lieu without a written waiver.
- Trusting a payoff figure you didn't get in writing.
Where I Fit, and Where I Don't
Texas homeowners tend to call me once the notice of sale is posted, the house needs repairs a buyer's lender won't accept, they've already moved, or they need a closing that can't slip past first Tuesday.
There's no need to empty the house for Dennis Buys Houses, either. Leave what you don't want and we'll handle it.
If you can cure within the 20 days, get a modification, or list a show-ready house with time to spare, that's likely better for you, and I'll say so.
Whatever the situation, I'll be upfront about whether I'm a good fit for it.
Frequently Asked Questions
No. A closing before the first-Tuesday auction that pays the lender, or an approved short sale, ends it.
Very fast. The auction can be about six weeks after the notice of default.
Not after a standard mortgage foreclosure. HOA foreclosures generally allow 180 days.
No. Pack what you care about; with an as-is sale, Dennis Buys Houses handles what's left.
Yes, within two years, with credit for the home's fair market value. Home equity loans don't allow deficiencies.
At the county courthouse on the first Tuesday of the month, between 10 a.m. and 4 p.m.
Start with CFPB – Find a Housing Counselor and TexasLawHelp.org. Key statutes: Tex. Prop. Code § 51.002 (notices and sale) and Tex. Prop. Code § 51.003 (deficiency).
Texas Selling Guides
- How to Sell a House in Probate in Texas
- Selling an Inherited House in Texas
- Selling a Vacant House in Texas
- Selling a House With Bad Tenants in Texas
- Selling a House With Delinquent Property Taxes in Texas
Is a First-Tuesday Sale on Your Calendar?
Send me the posting, your payoff and a few photos of the house. We'll go through every option, and if selling is the answer, you'll have a firm as-is offer in writing.