How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10163
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Finance Question Here...
Lane is online now
A new question is answered every 9 seconds

I need to foreclose on owner financed property in Texas -

Customer Question

I need to foreclose on owner financed property in Texas - sold to family member (S.A.F.E. does not apply). Where can I get written requirements to do so?
Sold to daughter - have Warranty Deed with Vendor's Lien and Real Estate Lien Note -- it's a lost cause.
Submitted: 9 months ago.
Category: Finance
Expert:  Lane replied 9 months ago.

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

...

Hi - I can help here ... First (might be stating the obvious) you might try telling her that you now have the foreclsure process in place and you're giving her one last chance to do a Deed in lieu of foreclosure.

...

But if that doesn't work (much less trouble,and once it's done it's done - she can't contest it) Texas foreclosures can be carried out both in court and out of court. Compared to many states, it is extremely easy to foreclose on properties in Texas and the process moves pretty fast. The whole thing can take about three months.

...

First there's the Pre-foreclosure Period

If there's no power-of-sale clause is included in the mortgage or deed of trust, the foreclosure is administered by the court.

...

You file suit against the borrower to get a court order to foreclose on the property.

...

Once the court declares foreclosure, the property is scheduled for public sale.

...

Foreclosures are accomplished out of court, most often in Texas. Before starting the foreclosure process, the lender first mails a letter to the borrower which allows at least 20 days to pay the default amount on the loan.

...

After this time period (can be longer, but must be at least 20 days)Following this time period, you begin the foreclosure process by mailing a second letter to the borrower which states that the loan has been accelerated (and the full balance is now due), and a sale has been scheduled to recover the full amount due on the loan.

...

Next, there's the NOTICE REQUIREMENT

Lender posts a notice of sale at the door of the county courthouse and files a foreclosure notice with the country clerk 21 days before the foreclosure sale. (The county clerk can tell exactly what their process is for this "door posting.")

...

You also mails a copy of the notice to the borrower at the last known address 21 days before the sale. Texas does not require the lender to publish notice of the sale in the local newspaper.

...

All foreclosure sales are between 10 a.m. and 4 p.m. on the first Tuesday of the month (regardless of holidays) usually on the county courthouse steps. The sale is conducted as a public auction with the property going to the highest bidder, who pays in cash, although the trustee may allow some time (within the same day) for the highest bidder to collect the full amount. The lender is also eligible to bid on the property.

...

The trustee transfers ownership to the highest bidder free and clear of any junior liens but subject to any senior liens. If the bid amount is higher than the amount owed to the lender, any surplus goes to junior lien holders. In Texas, the borrower's right of redemption after the sale does not exist (time period given to borrowers in foreclosure during which they can buy back, or “redeem,” their property).

...

There can be small procedural changes from county to county... If you insist on doing this yourself rather than use an attorney (remember foreclosures CAN be contested of somethings not done property) a little time spent with the clerk of court in your county can help ensure you dot the i's and cross the t's.

...

I hope this has helped.

...

Please let me know if you have any questions at all.

...

If this HAS helped, I'd really appreciate a positive rating (using the rating request, faces, or stars on your screen)

...

That's the only way I'll be credited for the work here.

...

Thank you!

Lane

Related Finance Questions