Texas Foreclosure
Glossary

Lis Pendens

A recorded legal notice that a property is subject to a pending foreclosure lawsuit or lien dispute.

Notice of Default (NOD)

A formal lender notice that a borrower has fallen behind on mortgage payments and foreclosure proceedings may begin.

First Tuesday Auction

Texas's mandatory monthly foreclosure sale day — all non-judicial trustee sales must occur on the first Tuesday of each month.

Notice of Substitute Trustee Sale

The formal notice filed to schedule a Texas property for auction at the First Tuesday trustee sale.

Texas Property Code §51.002

The Texas statute governing non-judicial foreclosure procedures, notice requirements, and sale rules.

Deed of Trust

The security instrument used in Texas mortgage loans — it empowers a trustee to sell the property upon borrower default without court involvement.

Non-Judicial Foreclosure

A foreclosure process that proceeds by trustee sale under the power of sale in the deed of trust — no court proceeding required.

Skip Tracing

The process of finding the current contact information (phone, email, address) for a property owner in pre-foreclosure.

Pre-Foreclosure

The period between a lender's first default notice and the First Tuesday auction — the primary opportunity window for investor outreach.

Trustee's Deed

The deed conveyed to a buyer at a First Tuesday foreclosure auction — it does not include a warranty of title.

Right of Redemption

The legal right of a borrower (or lienholder) to reclaim a foreclosed property by paying the full outstanding debt.

21-Day Posting Period

The mandatory minimum notice period between filing the Notice of Substitute Trustee Sale and the First Tuesday auction.

REO (Real Estate Owned)

A property that reverted to the lender after failing to sell at the First Tuesday foreclosure auction.

Homestead Exemption

Texas's constitutional protection for a homeowner's primary residence — which affects lien rights and foreclosure limitations.

Tax Lien Foreclosure

A foreclosure action initiated by a taxing authority (county, city, school district) for unpaid property taxes.

Speed-to-Lead

The competitive advantage in Texas foreclosure investing gained by contacting a distressed homeowner before other investors.

Deficiency Judgment

A court judgment against a borrower for the difference between the foreclosure sale price and the outstanding loan balance.

Short Sale

A property sale in which the lender agrees to accept less than the full outstanding loan balance to avoid a foreclosure auction.

HOA Foreclosure

A foreclosure action by a homeowners association for unpaid HOA dues and assessments.

Deed in Lieu of Foreclosure

A voluntary transfer of the property deed from a borrower directly to the lender to avoid the foreclosure process.

Cure Period

The period during which a defaulted borrower can pay the overdue amounts and stop the foreclosure process.