Cure Period

The cure period is the window of time after a default notice is sent during which the borrower can 'cure' the default by paying all past-due amounts, plus any penalties and fees, and have the loan reinstated as if no default occurred. In Texas, the cure period is a minimum of 20 days after the notice of default is sent before a lender can schedule the First Tuesday auction.

Texas Context

For investors, the cure period is actually a valuable indicator of homeowner distress. A property that reaches the NOSTS filing stage — meaning the cure period has expired without resolution — represents a situation where the homeowner either cannot or has not cured the default. This signals genuine financial distress and increases the probability that a direct purchase or short sale negotiation will be productive. Monitoring which filings progress from early lis pendens to NOSTS status is a key strategy for prioritizing investor outreach.