Facing Foreclosure in Texas: A Calm Guide to Understanding Your Options

This page is meant to slow things down. It explains, in plain English, what foreclosure generally is, how the process tends to work in Texas, and what it looks like to work through your options with someone alongside you. Diego can be your first conversation: you do not need to have answers before you call. Diego cannot stop a foreclosure, and this page is not legal advice. What you and Diego can do together is understand where you stand, decide on a sensible next step at each stage, and make sure the right professional, whether an attorney, your lender, a CPA, or a housing counselor, is involved when a question belongs with them.

What foreclosure is (in plain English)

When you buy a home with a mortgage, the loan is secured by the property. If payments are not made as agreed, the lender may have the right to sell the property to recover what is owed. That process is called foreclosure.

In Texas, most residential foreclosures are handled outside of court under the deed of trust you signed at closing, often called a "nonjudicial" foreclosure. Some loan types, such as Texas home equity loans, generally follow a different, court-involved process. Which rules apply to you depends on your loan documents, so this is an important question for an attorney.

Who this page is for

This guide may be helpful if:

• You have missed one or more mortgage payments, or expect to soon.
• You have received a notice of default, a demand letter, or a notice of sale.
• You are behind on property taxes or HOA dues and are worried about what comes next.
• You are trying to decide whether to keep the home or sell it.
• You are helping a parent, relative, or friend who is in this situation.

When an attorney needs to be involved right away

Please contact a licensed Texas attorney and your servicer immediately if:

• A sale date is already set and very close. Time matters.
• You are considering bankruptcy or a legal challenge. Only an attorney should advise on those strategies.

You can still call Diego the same day. He will help you keep the real estate side moving alongside your attorney, without slowing down the legal steps.

If you want to keep the home and your hardship is temporary, your servicer and a HUD-approved housing counselor are key conversations; they can explain repayment plans, forbearance, or loan modification.

How the Texas process tends to work

Every loan and servicer is different, and timelines can change. Treat this as a general map, not a schedule, and confirm your own dates with your servicer and an attorney.

1. Missed payments and early contact. Servicers typically send reminders and late notices. Under federal servicing rules, a servicer generally must wait until a loan is more than 120 days delinquent before starting the formal foreclosure process, though there are exceptions. This early window is often when the most options are available.
2. Notice of default. The servicer sends a written notice giving you a period of time to catch up on the past-due amount.
3. Notice of sale. If the default is not resolved, the servicer may send a notice of sale, which is generally also filed with the county and posted publicly ahead of the sale date.
4. The foreclosure sale. Texas foreclosure sales are generally held on the first Tuesday of the month at a location designated by the county. After a sale, there may be additional steps related to moving out. An attorney can explain what applies to you.

The most important point: the earlier you act, the more choices you usually have.

Options people commonly explore

Which option fits depends on your goals, your finances, and your lender:

• Reinstatement or a repayment plan: catching up on past-due amounts, all at once or over time.
• Forbearance: a temporary pause or reduction in payments, usually followed by a plan to repay.
• Loan modification: a change to the loan's terms to make payments more manageable.
• Traditional sale: if you have equity, selling before foreclosure may let you pay off the loan and keep any remaining proceeds.
• Short sale: if you owe more than the home is worth, selling with your lender's approval for less than the balance. (See our separate guide on short sales.)
• Deed in lieu of foreclosure: voluntarily transferring the property to the lender, if the lender agrees.
• Legal options: strategies such as bankruptcy or challenging the foreclosure belong entirely with an attorney.

Working through your options with Diego, step by step

Knowing the options is one thing. Deciding between them under a deadline is another. This is where Diego's role goes beyond listing a home: from the first conversation on, you and Diego work through the decision in order, Diego will recommend the next step at each stage, and the legal and loan decisions stay with the professionals who own them.

Step 1: Review the notices together

What you and Diego do: You and Diego review your mortgage statement and every letter you have received, put them in date order, and identify which ones mention deadlines or a sale date. You also talk through what you hope will happen.

Diego's next-step recommendation: If a date is close, Diego will recommend calling an attorney and your servicer that day, before anything else.

Your next action: Write down your servicer's contact information, your loan number, and any dates in the letters.

Step 2: Find out whether you have equity

What you and Diego do: Diego prepares a comparable-based estimate of what your home may realistically sell for, and you and Diego compare it with what you owe. This one number shapes everything.

Diego's next-step recommendation: With meaningful equity, Diego may recommend looking closely at a traditional sale, which may protect more of your money than waiting. Without it, he will recommend exploring a short sale or a lender option. Either way, he will explain what the numbers suggest in plain language.

Your next action: Request a current payoff or reinstatement figure from your servicer so the comparison is accurate.

Step 3: Bring in the right professionals

What you and Diego do: Together you sort out which questions are legal, tax, or loan questions rather than real estate ones. Diego will help you figure out which kind of professional you need and what to bring to each conversation.

Diego's next-step recommendation: Diego will recommend speaking with your servicer about loss-mitigation options, a HUD-approved housing counselor for free, neutral guidance, an attorney about your notices, deadlines, and any legal strategy, and a CPA about possible tax effects.

Your next action: Schedule those calls and share what you learn with Diego so the plan reflects their guidance.

Step 4: Choose a path

What you and Diego do: With the facts in hand, you and Diego weigh the real estate tradeoffs of each path, including timing, likely sale price, and what each requires from you, alongside your attorney's and servicer's input.

Diego's next-step recommendation: Diego will tell you honestly which path he thinks fits your situation from the property side. The decision is yours.

Your next action: Agree on one path and a realistic timeline, with your attorney's input on any dates.

Step 5: If selling is the right choice, move with a plan

What you and Diego do: You and Diego set a price based on the market and a short prep list. Diego lists and markets the home, handles showings and negotiation, and coordinates with title, the buyer's agent, and, in a short sale, the lender's short-sale department.

Diego's next-step recommendation: Diego will recommend focusing only on prep that changes buyer perception and favoring offers that can close on time. He will also keep reminding you that listing does not pause a foreclosure, so dates stay front and center.

Your next action: Keep your attorney and servicer updated as the sale progresses.

Step 6: Through closing and the move

What you and Diego do: You and Diego work with the title company through closing and plan your move early. If you will rent or buy next, Diego can help with that step, too.

Diego's next-step recommendation: Diego will recommend keeping copies of every document for your CPA and attorney.

Who does what

Diego, as your REALTOR® and first point of contact, is with you from the first conversation onward. He keeps the real estate side organized and moving: home value, the tradeoffs between paths, listing and marketing if you sell, negotiation, and closing coordination, with a next-step recommendation at every stage, in English or Spanish.

An attorney reviews your notices, loan documents, and deadlines, and handles any strategy to delay, contest, or stop a foreclosure, plus bankruptcy, deficiency, and move-out questions.

A CPA or tax professional answers questions about possible tax effects of forgiven debt or a sale.

Your servicer or a HUD-approved housing counselor provides your exact account status and dates, explains loss-mitigation options, and offers free, neutral guidance (HUD-approved counselors do not charge for most foreclosure counseling).

Common myths and mistakes

"If I ignore the letters, I'll have more time." The process generally continues whether or not you open the mail.

"Someone can guarantee they'll stop my foreclosure." Be very cautious with anyone who promises that, especially if they ask for upfront fees or ask you to sign over your deed. Foreclosure-rescue scams target homeowners in distress. Talk to an attorney or a HUD-approved housing counselor first.

"Listing my home pauses the foreclosure." Listing by itself does not stop the process. A sale has to close, or the lender has to agree to a change, before the sale date.

"I should handle this alone so no one finds out." A confidential conversation, and someone alongside you for each step, often brings more clarity and less stress than carrying it by yourself.

How working with Diego looks

Diego brings the same calm, organized approach he uses with every seller: real numbers, honest options, and a clear next step, so you are never left guessing what comes now.

1. First conversation. A private, no-pressure call about your home, your loan, any dates you have received, and what you hope will happen. You leave knowing what Diego will recommend you do first.
2. Options and a plan. You and Diego work through the steps above together, and Diego will help you connect with an attorney, CPA, or housing counselor for the questions that belong with them.
3. Together to the finish. Whether you pursue a lender option or sell, Diego stays with you. If you sell, you and Diego follow a clear plan for pricing, preparation, listing, and timeline coordination, with plain-language updates and a next-step recommendation at each decision point.

Diego is originally from Argentina and works in English and Spanish, so your family can talk through hard questions comfortably, in the language that feels right.

Frequently asked questions

Can Diego stop or delay a foreclosure?

No. Diego is a REALTOR®, not an attorney, and he cannot stop or delay a foreclosure. If you have received a notice of default or a notice of sale, contact a licensed Texas attorney and your loan servicer as soon as possible.

Can I sell my home if I am behind on payments?

Selling may be one option, depending on your timeline, your loan, and what the home could sell for. Talk with your attorney and servicer about deadlines, and Diego can walk you through the real estate side of a possible sale.

What is the difference between a short sale and a foreclosure?

In a short sale, you sell the home with the lender’s approval for less than what you owe. A foreclosure is the lender’s legal process to take the property. Read the short sale guide for more.

Who should I call first after a foreclosure notice?

A licensed Texas attorney and your loan servicer. A HUD-approved housing counselor can also provide free guidance. Diego can be part of the conversation on the real estate side.

Can we talk in Spanish?

Yes. Diego works in English and Spanish. Start at /contacto/ or call (214) 833-8911.

Related pages

Selling your home? See the sellers page. Owe more than the home is worth? Read the short sale guide. Diego serves homeowners across North DFW — see the service areas.

Important disclaimer

This article is general educational information only. It is not legal, tax, or financial advice. Diego Alvarado is a Texas REALTOR® with Monument Realty; he is not an attorney, CPA, or financial advisor, and he cannot stop or delay a foreclosure. His recommendations relate to the real estate process; legal, tax, and loan decisions belong with the appropriate licensed professionals. Foreclosure rules and timelines depend on your loan documents and current law, and they can change. If you have received a notice of default or a notice of sale, please contact a licensed Texas attorney and your loan servicer as soon as possible. A HUD-approved housing counselor can also provide free guidance.

Ready to talk it through?

Diego Alvarado, REALTOR® | Monument Realty
Alvarado Realty Group

• Call: (214) 833-8911
• Start here: alvaradorealtygroup.com/contact/
• Hablo Español: alvaradorealtygroup.com/contacto/

The conversation is confidential and comes with no obligation. You will leave with a clearer picture of the real estate side and a recommended next step that fits your situation.

Start here(214) 833-8911Hablo Español