What are the steps in a foreclosure process?

In Texas, the foreclosure process typically follows a few basic steps. First, the lender must inform the borrower of the default by providing a written notice. This is usually done by sending the borrower a "Demand Letter" that states the amount owed and the options for the borrower to repay or contest the amount. Second, the lender must file a foreclosure suit in court, and provide the borrower with legal notice. This is done by serving the borrower with the court papers, either through personal service or through certified mail. Third, if the borrower does not respond to the foreclosure suit or fails to repay the amount due, the lender will set a foreclosure sale date. Fourth, the lender will usually then file a notice of sale with the local county clerk to inform the public of the upcoming sale. The notice must be published in a newspaper of general circulation. Fifth, on the foreclosure sale date, the lender can sell the property at a public auction. The sale is usually done in an open, competitive bidding process. The highest bidder becomes the new owner and any proceeds from the sale go to the lender to cover the unpaid debt. Finally, if the property does not sell at the auction, the lender may then take ownership of the property. This process is known as a "real estate owned" or REO foreclosure. At any point during the foreclosure process in Texas, the borrower has the right to cure the default by paying back the amount due, and the lender has the right to withdraw the foreclosure suit if it chooses.

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