Behind on Mortgage Payments in Texas

This page is for a homeowner who has missed one or more mortgage payments but has not reached a foreclosure sale. Being behind can happen after a job change, illness, divorce, repair bill, or a run of expenses. What matters now is what the servicer records show and how much time you have to choose a workable response.

A direct sale is one option, not a loan rescue program. Ready Estates buys houses for its own account. If a purchase is completed, the mortgage is paid from the proceeds at closing. We do not advise you to stop making payments, ignore your servicer, or assume that an offer request will delay any later foreclosure step.

What to do before you choose a sale

Open every letter and message from the servicer. Look for the number of missed payments, the amount needed to bring the loan current, any deadline, and the next step described in the notice. Then call the servicer using the number on your mortgage statement. Ask for the exact reinstatement amount, the date through which that amount is good, and whether a loss mitigation application is available.

A HUD approved housing counselor can review the same notices with you for free at (800) 569-4287. Keep notes of servicer calls and copies of anything you send. A private buyer cannot speak for the servicer, change the amount due, or promise that a review will be approved.

If you can bring the loan current, reinstatement may be simpler than selling. In general, reinstatement means paying the past due payments and authorized fees, not paying off the entire loan balance. Ask the servicer for the figure in writing because interest, fees, escrow items, and another payment date can change it.

How a direct cash sale works when payments are behind

We begin with the property address, your estimate of the loan balance, and the amount needed to bring the account current. We evaluate the house in its present condition using recent nearby sales, expected repairs, and the costs of holding and reselling it. A short visit may be needed before a written offer is made. The offer is free, and you can ask us to walk through the calculation.

Equity matters. A purchase can pay the mortgage at closing only if the sale proceeds are enough to cover the payoff and other amounts that must be cleared for the transfer. If the loan balance is higher than the amount available from a sale, we will tell you that a normal purchase does not solve the problem. A short sale would require the servicer to accept less than the full payoff, and that decision belongs to the servicer.

If the numbers work and you accept an offer, the title company prepares the closing and obtains a current payoff statement. Closing can often occur in about 7 to 14 days when title is clear, and a later date can be selected if no deadline requires a faster closing. The mortgage payoff is shown on the settlement statement and paid from the proceeds at closing. Any remaining proceeds are disbursed according to the closing documents.

You do not need to repair, stage, or empty the house before closing. You should remove the personal property you want to keep and tell us about tenants, access issues, or notices you receive while the sale is pending. If a notice of sale arrives, contact the servicer immediately and tell us the date. A pending purchase does not change that date unless the closing is completed before the sale.

Texas and federal timing rules

Federal mortgage servicing rules generally bar a servicer from making the first foreclosure notice or filing until a loan is more than 120 days delinquent. Missed payments can still have consequences before then, including amounts and reporting described in the loan documents. Acting early may leave time to speak with the servicer before the Texas sale process begins.

Texas foreclosure is generally nonjudicial under Texas Property Code Section 51.002. After default, the borrower must receive notice and at least 20 days to cure under Section 51.002(d). If the default is not cured, a notice of sale must be given at least 21 days before the sale under Section 51.002(b). The notice is posted at the courthouse, filed with the county clerk, and served on the borrower.

Texas sales take place on the first Tuesday of the month between 10 a.m. and 4 p.m. in the courthouse area designated by the county commissioners court. Texas does not provide a general right to redeem a home after a mortgage foreclosure sale. These deadlines are the reason a homeowner should not wait for a final letter before asking about reinstatement, loss mitigation, listing, or a direct sale.

Other options that may fit better

Ask the servicer whether you qualify for a repayment plan, forbearance, loan modification, or another loss mitigation option. The servicer will explain its own requirements and deadlines. A HUD approved counselor can help you prepare questions and understand the servicer response. No option should be treated as approved until the servicer confirms it in writing.

Listing the house may produce more money if you have equity, the property is in good condition, and there is enough time for marketing and a financed buyer to close. Tell any agent about missed payments and any notice you have received at the first meeting. The list price alone does not solve the loan balance, so the expected net proceeds matter more than the asking price.

Related situations

If a notice of sale has already been issued, read selling a house in foreclosure. If tax or lien balances are adding to the problem, see back taxes or liens. If the missed payments follow a separation, read selling a house during divorce. You can check our service area on the areas we serve page.