Legal Question in Real Estate Law in Texas

We have a settlement agreement where grantor was to pay 10 equal payments no later than the 1st of the month for 10 months or we can go ahead with accelerating the note or foreclosure. Do we need to give a certain time limit if we send a notice to accelerate?


Asked on 7/15/10, 12:57 pm

1 Answer from Attorneys

David Hays The Hays Law Firm, P.C.

You have some contradicting terms in your question. I assume you meant to state that you owner financed property whereby the Buyer was to pay you monthly for 10 months, etc. If this is the case and if the property is the Buyer's homestead, Section 51.002 of the Texas Property Code requires that you provide the debtor a "Notice of Default" which must be delivered by registered mail, return receipt requested, giving the Debtor 20 days to cure the passed due amount before accelerating the debt and posting the property for foreclosure. If the Debtor does not cure (remit payment) of the past due amounts (plus late fees and attorneys fees) you can then accelerate the note and demand payment of the entire outstanding balance (plus accrued interest and fees) and post the property for foreclosure. You must send the Notice of Foreclosure Sale via registered mail, return receipt requested. The debtor must be given notice and the Notice of Sale Posted at least 21 days before the date of the foreclosure sale. The Property Code sets forth the requirements of the Notice of Sale as well as the calculations (which differ) for determining the 20 & 21 day notice periods.

I strongly recommend you hire an attorney to assist you in the foreclosure process as there are many procedural issue that, if not followed, will result in a an invalid foreclosure.

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Answered on 7/28/10, 7:24 pm


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