Legal Question in Real Estate Law in Texas

Re: Foreclosure

Like any other foreclosure, the property will be sold to the highest bidder, and the proceeds of sale will be applied to the debt which the property secures. If after payment of the debt and expenses of sale, any amount remains, the surplus will be paid to the debtor (the LLC in your case).

Very frequently the secured creditor will bid all or part of his debt at the sale. If his bid is the highest bid, the the property will be deeded to him (or assigned to him if other than real property).

Re: Foreclosure

If the cost of liquidating the property does not cover the debt, the LLC and any guarantors of the debt may be liable for a deficiency judgment.