Re: Redemption and Defficiency in Texas

Posted by Bill H on June 29, 2005 at 01:43:44:

In Reply to: Redemption and Defficiency in Texas posted by Logo on June 28, 2005 at 13:35:31:

: How long is the redemption period in Texas? Also, if the property doesn't sell at auction and goes to the bank what is the redemption process? Can the owner pay the catch up amount and keep the existing loan? Or in this case is the note accelerated and the loan no longer exists and the owners now have to go and get a new loan to redeem?

You need to go to the Texas Statutes and read Chap 51. It will answer your questions.

As Nick said, there is no redemption period on foreclosure. In simple terms if there is a deficiency anyone going after the deficiency must file within 2 years of the foreclosure. Then it goes to court and you can petition the court to decide if the FMV at the time of sale was higher or lower than the foreclosing sale price and judge accordingly as to the deficiency.

Good luck,
Bill H

: Also, what are the facts with regard to Texas and defficiency judgements? Can the lender just give the house away at auction and pursue the rest from the previous owner? What are ways to protect against?

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Comments:
: : How long is the redemption period in Texas?  Also, if the property doesn't sell at auction and goes to the bank what is the redemption process?  Can the owner pay the catch up amount and keep the existing loan?  Or in this case is the note accelerated and the loan no longer exists and the owners now have to go and get a new loan to redeem?

: You need to go to the Texas Statutes and read Chap 51. It will answer your questions.

: As Nick said, there is no redemption period on foreclosure. In simple terms if there is a deficiency anyone going after the deficiency must file within 2 years of the foreclosure. Then it goes to court and you can petition the court to decide if the FMV at the time of sale was higher or lower than the foreclosing sale price and judge accordingly as to the deficiency.

: Good luck,
: Bill H

: : Also, what are the facts with regard to Texas and defficiency judgements?  Can the lender just give the house away at auction and pursue the rest from the previous owner?  What are ways to protect against?


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