Nothing here needs explaining to us
Falling behind on a mortgage in El Paso is almost never the result of anything unusual. A layoff at the plant. A PCS that came at the worst possible time. Hospital bills. A divorce that split one income across two households. Most of the people who call us made every payment for years before the year that broke.
So there is nothing to be embarrassed about here, and nothing to explain. What matters is the calendar.
This page lays out the actual Texas timeline, what a cash sale can and cannot do about it, what it costs, and — first — the free help that has nothing to do with us. Free HUD-approved housing counseling exists, it works, and the number is (800) 569-4287. Use it before you decide anything, including anything with us.
Can you sell a house that is already in foreclosure?
Yes. In Texas you can sell your house any time before the foreclosure sale is finished. The mortgage gets paid off out of the sale proceeds at closing, and whatever is left over is yours.
That is the part people miss. Foreclosure is not the bank taking your house on day one — it is a scheduled auction with a date on it. Anything that pays off the loan before that date ends the process. A sale is one of the ways to do that. Reinstating the loan, a modification, forbearance, or a Chapter 13 filing are others, and for a lot of people one of those is the better answer.
How a cash sale works when the clock is running
A normal listing takes 30–60 days to get an accepted offer, then another 30–45 for the buyer's lender to fund. If a sale date is six weeks out, that math does not work — and it is the single biggest reason people who could have sold end up at the auction anyway.
A cash sale skips the parts that take the longest:
- No lender on our side. Nothing to underwrite, no appraisal to wait on, no financing that falls through in week five.
- No repairs and no repair list. We buy as-is. If the roof is shot or the AC died in June, that is priced in, not fixed first.
- No listing, no photos, no open house. Nobody in the neighborhood has to know anything.
- The payoff is handled at the title company, not by us. The title company orders the payoff statement from the servicer and the loan is paid out of the sale proceeds at closing. We never contact a lender on your behalf and we never ask you for money.
We close at a licensed title company. They hold the money in escrow, confirm the title is clear, and pay everyone at the table — we never handle your funds directly. Here is the whole process, step by step.
What we will not tell you: that we can always stop a foreclosure. Sometimes there is not enough time. Sometimes the payoff is more than the house is worth. Sometimes there are liens nobody knew about. We will tell you which one you are looking at as soon as we can see the numbers — and if a cash sale is not your best move, we will say so.
The Texas foreclosure timeline
Texas is a non-judicial foreclosure state. For most home loans, no judge and no lawsuit are involved: the lender uses the power of sale written into the deed of trust. Home equity loans, HELOCs, tax lien transfer loans and HOA liens are the exceptions — those usually do require a court order.
Here is what the law actually requires:
| Stage | Timing | What it means |
|---|---|---|
| Missed payments | Under federal servicing rules, the loan generally has to be more than 120 days delinquent before foreclosure can start | There is more room early on than it feels like. This is the best time to call anyone. |
| Notice of default (demand letter) | Written notice giving at least 20 days to cure — 30 days on some FHA, VA and home equity loans | The loan can be reinstated by paying the past-due amount, not the whole loan |
| Notice of sale | At least 21 days before the sale date, counted from the day it is mailed. Also posted publicly and filed with the county clerk | This is the hard deadline. It may be called a Notice of Trustee’s Sale or Notice of Substitute Trustee’s Sale |
| The sale | First Tuesday of the month, between 10 a.m. and 4 p.m. — first Wednesday if the first Tuesday is January 1 or July 4 | In El Paso County these sales are held at the El Paso County Coliseum, where the Commissioners Court moved them in 2021 |
21 days is a minimum, not a warning. If a notice was mailed on the 10th, the sale can be the first Tuesday three weeks later. That is not enough time to list a house.
After the sale, there is usually no do-over. Texas gives no general right of redemption — the house cannot be bought back afterward. Narrow exceptions exist for certain tax lien and HOA or condo association foreclosures.
One more: if the house sells at auction for less than is owed, the lender has up to two years to sue for the difference. Texas Law Help notes that lenders rarely bother, because of the time and expense — but "rarely" is not "never," and a sale that pays the loan off removes the question entirely.
What it costs — the honest tradeoff
Here is the catch, and we would rather you hear it from us: we pay less than a retail buyer would. Here is exactly why. We put the house under contract at a price that leaves room in it, and then we bring in an investor from our network who does the repairs and either resells it or rents it out. That room in the price is how everyone in the chain gets paid — including us.
If you have the time and money to fix the house and list it with an agent, you will almost certainly net more — here is the honest comparison. This trade only makes sense when time or repairs are the problem.
| You give up | You get |
|---|---|
| Retail price — typically the biggest number a house can bring | Certainty of a closing date, and no financing that can collapse |
| Time on the market that might get you more | No repairs, no cleaning, no listing, no commissions |
| Nothing else — you pay no fee to get an offer | If the sale closes and the loan is paid off before the auction date, the foreclosure ends and any equity left over goes to you |
When a cash sale to us is genuinely the right call: there is real equity, the sale date is close, and the house needs work that cannot be funded right now.
When it is not: the loan can be reinstated; the servicer will approve a modification or forbearance; there are three or four months and the house is in good shape (list it — a realtor will likely net more); or more is owed than the house is worth, in which case it is a short sale that the lender has to approve, and nobody can promise that outcome.
We never charge anything up front. Nobody legitimate does. The Texas State Law Library specifically warns that scammers target homeowners in foreclosure — if any company asks for money before closing to "save" a house, walk away.
Free help that has nothing to do with us
Before deciding anything, talk to a HUD-approved housing counselor. It is free or very low cost, and it is not a sales call. They will go through reinstatement, modification, forbearance and every program you might qualify for, and they can negotiate with a servicer on your behalf. If a counselor gets you back on track and you never call us, that is a good outcome. Genuinely.
Free or very low-cost counseling, nationwide. TTY 800-877-8339.
Homeowner's HOPE Hotline
Nonprofit HUD-approved counselors via HOPE NOW.
Texas Department of Housing and Community Affairs
Foreclosure prevention resources for Texas homeowners.
Plain-language Texas foreclosure fact sheet.
FAQ
Can I sell my house if it is already in foreclosure?
Yes. In Texas you can sell any time before the foreclosure sale is completed. The mortgage is paid off from the proceeds at closing and anything left over is yours. The practical question isn't whether you're allowed to — it's whether a sale can close before the auction date on your notice.
When is it too late to sell?
Once the property is sold at the foreclosure auction, it is done — Texas gives no general right of redemption for a standard mortgage foreclosure. Before that date, a sale is still on the table. The tighter the window, the more the timing depends on the payoff, the title work, and the servicer, so tell us the date on your notice on the first call and we will be straight with you about whether it is realistic.
How many missed payments before foreclosure starts in Texas?
Under federal servicing rules the loan generally has to be more than 120 days past due before a servicer can start a foreclosure action. After that, Texas law requires a notice of default giving at least 20 days to cure, then at least 21 days notice of the sale — so from the first missed payment it is usually months, but the final stretch can be as short as three weeks.
What if I owe more than my house is worth?
Then a straight sale will not cover the payoff, and it becomes a short sale — the lender has to agree to accept less than the full balance, which takes a hardship package and their approval. Nobody can guarantee a lender will say yes. A HUD-approved counselor is the right first call in that situation, and a deed in lieu of foreclosure may also be worth asking a servicer about.
Do I need a lawyer to stop a foreclosure?
Not always — but you should talk to one if you think the notice was improper, if you are considering a temporary restraining order or bankruptcy, or if there is a dispute over the loan. We are home buyers, not attorneys, and we will not pretend otherwise. Free HUD-approved counseling is available to everyone at (800) 569-4287, and we will happily wait while you use it.
We are not attorneys and this page is not legal advice. Texas foreclosure rules are summarized here from Texas Law Help, the Texas State Law Library and the Texas Property Code; your own notice, loan type and dates control what actually applies to you. For a legal question — whether a notice was proper, whether a TRO or Chapter 13 makes sense, what a deficiency means — talk to a lawyer. El Paso has foreclosure defense attorneys who do consultations.
