Non-Judicial Foreclosure

Non-judicial foreclosure (also called foreclosure by trustee sale or power of sale foreclosure) is the process by which a lender forecloses on a defaulted property without filing a lawsuit or obtaining a court judgment. The process is authorized by the power of sale clause in the deed of trust and is governed by state statute. Texas is a non-judicial foreclosure state, which makes it one of the fastest foreclosure markets in the country.

Texas Context

Texas's non-judicial foreclosure process is governed by Texas Property Code §51.002. The entire process — from first default notice to First Tuesday auction — can be completed in as few as 41 days. In practice, most Texas foreclosures take 60-180 days from first notice to sale. The speed and relative simplicity of the Texas process makes lis pendens monitoring especially valuable: investors who receive early notice have time to conduct due diligence, contact the owner, and position themselves before the sale.