Can I Sell My House Before Foreclosure in Texas?

If you're behind on payments, receiving foreclosure notices, or feeling overwhelmed by calls from the lender, you’re not alone. Many Texas homeowners face financial hardship at some point—job loss, medical bills, divorce, rising expenses, or unexpected life events happen.

The good news is this: yes, you can absolutely sell your house before foreclosure in Texas, and in many cases, it’s the fastest and cleanest way to stop the foreclosure, protect your credit, and walk away with your equity.

This guide breaks down exactly how the process works, your legal rights, and the steps you can take right now to prevent foreclosure in Texas.

You Can Sell Your House Up Until the Foreclosure Auction

Texas has one of the fastest foreclosure timelines in the country, but homeowners still have the right to sell their property all the way up to the moment the property is auctioned.

This means:

• Even after receiving a Notice of Default

• Even after receiving a Notice of Acceleration

• Even after the home is posted for the next auction date

…you can still sell the home and stop the foreclosure.

As long as you close before the auction date, the lender is paid in full and the foreclosure process ends.

How Selling Stops Foreclosure in Texas

When you sell before foreclosure:

1. A buyer purchases your home

2. The buyer pays off your mortgage and any past due amounts

3. The foreclosure case is closed

4. Your credit avoids the severe damage of a completed foreclosure

A foreclosure stays on your credit for seven years, so selling before the auction can protect your financial future.

What If You Have No Money for Repairs or Cleaning?

Most homeowners facing foreclosure cannot afford repairs, updates, staging, or cleaning.

That’s completely normal — and not a problem.

You can sell your house as-is, without:

• Repairs

• Cleaning

• Showings

• Appraisals

• Inspection negotiations

Cash buyers in Dallas and across Texas specialize in purchasing distressed homes quickly.

How Much Time Do You Have Before Foreclosure Happens?

Texas foreclosure laws move quickly.

Here’s the basic rhythm:

• The lender must send a Notice of Default

• After that, they must give you at least 20 days to cure the debt

• If the debt isn’t cured, they send a Notice of Sale

• The foreclosure auction happens on the first Tuesday of the month

This timeline varies based on the lender, but Texas law is consistent:
You can sell anytime before the auction takes place.

Your Options to Sell Before Foreclosure

You actually have several options depending on your situation:

Option A: Sell As-Is for a Fast Cash Offer

Best for homeowners who:

• Need to stop foreclosure immediately

• Cannot afford repairs

• Don’t want showings or delays

• Want a guaranteed close before the auction

Cash buyers can often close in 7–14 days, sometimes faster if needed.

Option B: List the Home on the Market (If There’s Enough Time)

If the foreclosure auction is more than 4–6 weeks away, listing may be possible.

This option can result in:

• More exposure

• Potentially higher offers

But it also comes with:

• Showings

• Appraisals

• Inspection negotiations

• Risk of the deal falling through

If time is tight, listing may not be the safest route.

Option C: Loan Reinstatement or Payoff at Closing

This option allows you to:

• Sell the home

• Pay the past-due amount at closing

• Receive any remaining equity

This is often the best path for homeowners with equity who simply need relief.

Option D: Short Sale (Only if You Owe More Than the Home Is Worth)

If you owe more than the home’s value, a short sale might be an option—with lender approval.

This process takes longer, so act early.

What If You Have Multiple Mortgages, Liens, or HOA Debt?

You can still sell.

At closing, the title company will pay:

• Mortgage balances

• Past-due payments

• HOA fees

• Taxes

• Liens

• Attorney fees

You do not need to pay these out of pocket. They are deducted from the sale proceeds.

How Peña Real Estate Helps Homeowners Stop Foreclosure Fast

Peña Real Estate provides Dallas and Texas homeowners with:

✔ Fast cash offers
✔ As-is purchases
✔ Zero repairs or cleaning needed
✔ No showings
✔ No commissions
✔ Flexible closing dates (even within days)
✔ Coordination with the lender if needed

Our goal is simple:
Help you stop foreclosure and keep as much equity as possible.

If you want to stop foreclosure fast and explore your options, send me the address and I’ll prepare a no-pressure analysis showing exactly what you can do before the auction.