Hello,
The statute of limitations on contract actions in Texas is 4 years, so they can pursue the deficiency judgment.
Lenders may obtain deficiency judgments, but they are limited to the difference between the fair market value of the property at the time of sale and the balance of the loan in default.
Under TX law a foreclosure notice must be mailed to the borrower at the last known address as shown in the records of the lender 21 days before foreclosure.
Texas also requires a foreclosure notice to be posted at the county courthouse door 21 days before foreclosure and requires a foreclosure notice to be filed with the county clerk 21 days before foreclosure.
You can check to see where they sent the notice and possibly challenge it if they sent it to an unknown address.
Thanks.
MAtt
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Attorney
10 years experience real estate, estate planning, and criminal law. REALTOR. Landlord 18+ years
That is a more specific Code than the general statute of limitations on contracts so it would trump the general and apply. They would have 2 years from the time of the entry of judgment to pursue the deficiency. Based on the timeline, if they did sell the loan and the purchaser filed for judgment after the 2 year deadline, they have done so unlawfully.
I would suggest getting all the paperwork and timeline together and contacting a real estate attorney about filing suit to recover your damages.
Matt
I think that you could maintain a breach of contract suit under the general statute of limitations in Texas that gives you 4 years to bring an action under a contract. I would suggest contacting a local real estate or civil attorney to assist as this is not something you want to undertake yourself. The other side will be represented by counsel and you should be as well.