How Texas Foreclosure Auctions Work

Most Texas home loans are secured by a deed of trust, and a deed of trust lets the lender sell the property without going to court. The whole process is public, fast and scheduled: sales happen on the first Tuesday of every month, and the notice that starts one is filed at least 21 days before.

Three recorded documents matter. The deed of trust created the lien when the loan was made. If the loan was sold, an assignment moved the lien to the new holder. The appointment of a substitute trustee names the person or company that will conduct the sale. The guide to deed of trust, assignment and release explains how the three differ.

The notice of substitute trustee sale is filed with the county clerk and posted at the courthouse. It states the borrower, the original lender, the current mortgagee, the deed of trust being foreclosed and its instrument number, usually the original principal, the sale date, the earliest time the sale will begin, and the venue. A copy goes to the borrower by certified mail.

Sales run between 10 AM and 4 PM at the venue the county's Commissioners Court designated: in Dallas County the north side of the George Allen Courts Building, in Collin County the county courthouse in McKinney. Each sale must begin within three hours of the time in its notice. Bidding is by public outcry, the property is sold as is, and the winning bidder pays cash, typically the same day.

The winning bidder receives a trustee's deed. Liens recorded after the foreclosed deed of trust are wiped out; liens senior to it, and property taxes, survive and become the buyer's problem. That order of priority is why the age of the foreclosed loan matters so much: an old first-lien deed of trust wipes nearly everything recorded since.

A sale can be postponed by announcement at the venue or withdrawn by the mortgagee at any time, and the recorded notice is never updated. Borrowers reinstate, file bankruptcy, or sell before the date. A repeat posting a few months later usually means the first attempt was cured and the loan defaulted again.

PlotCipher reads both counties' notices every morning, joins each to its appraisal record, and tracks whether a notice disappears from the index. A property's full research shows every deed of trust, assignment, release and prior foreclosure step recorded against it.