Understanding Foreclosure: How Long Until Eviction?
If you’re behind on your mortgage and know you won’t be able to catch up before your lender issues a notice of default, it’s crucial that you understand how the foreclosure timeline works. Knowing what to expect when you’re facing foreclosure in Texas will help you find new housing in the appropriate time frame or make alternate arrangements to sell your house fast and avoid the foreclosure process entirely.
Read on to learn what you can expect during the foreclosure process, from the initial notice of default to the auction sale and eviction proceedings.
When Will a Lender Start the Foreclosure Process?
In Texas, foreclosure is typically a three-step process that begins after you’re at least 120 days late on paying your home loan. Some banks, usually smaller lenders, may begin the foreclosure process immediately after you’re 120 days delinquent, while others may not issue a notice quite that quickly.
Here’s a general overview of how the foreclosure process progresses:
Notice of Default (NOD). When your lender sends the NOD, they are legally required to give you 20 days to “cure” the delinquency (bring the loan current). Some FHA, home equity, and VA loans extend the timeframe to 30 days.
Notice of sale filed. Lenders are legally required to send you a notice at least 21 days before the scheduled foreclosure sale. Those 21 days are counted from the day the certified letter is mailed, not the day you receive it. Keep in mind that failing to accept or pick up your certified letter does not invalidate it.
Foreclosure auction. In Texas, all foreclosure auction sales happen on the first Tuesday of every month at the local county courthouse. After the house sells at auction, you no longer have rights to the property. That doesn’t necessarily mean you need to vacate the home immediately, but you’ll need to do so within the appropriate time frame to avoid eviction.
How Long Can You Stay in the House Before You Get Evicted?
Once your home has sold at the foreclosure auction, you’ll have a short while to vacate the property if you’re still living there. The new owner (which is usually the bank) will send you a notice to vacate, which typically allows you three days to move out.
If you don’t leave the property in accordance with the timeline detailed in that notice, the new owner will likely file an eviction. Some lenders may choose to pay your moving costs (this is called cash for keys) to avoid the time and monetary investment involved in undertaking an eviction.
Loss Mitigation During Foreclosure
When a notice of default is filed, you’ll typically have until the date of the scheduled foreclosure sale to make payment arrangements with your lender to catch up on the past-due amount. If you request a loss mitigation application packet and submit the complete application within 37 days of the scheduled foreclosure sale, most lenders are required to cease all foreclosure activity.
During the period between the notice of default and the scheduled foreclosure sale, you can then attempt to sell your house fast and use that money to catch up on your missed payments. Taking that route will effectively stop the foreclosure process from occurring and allow you to avoid eviction and a significant hit to your credit.
Need to Avoid Foreclosure? We Buy Houses Fast for Cash
Want to sell your house fast to prevent foreclosure? Don’t hesitate to reach out to our team at We Buy Austin Houses! We buy houses of all types throughout Austin and the surrounding metro area, and we’re ready to buy your house for fair market value, no matter what kind of condition it’s in.