Does a foreclosure wipe out all liens in Texas?

The effect of foreclosure is to cut off and eliminate junior liens, including mechanic's liens, but not tax obligations. Most foreclosures in Texas are non-judicial.

US Legal Forms
Release of Lis Pendens

File Notice Lis Pendens Foreclosure In Texas

Q: What are the requirements for providing notice of a foreclosure sale in Texas?

In a non-judicial foreclosure, after the 20-day &quot;right to reinstate&quot; period has expired and at least 21 days before the sale, the servicer must provider the borrower with a Notice of Sale, letting them know the date and earliest time of the sale.

Category:

Real Estate - Lis Pendens

State:

Multi-State

Control #:

US-00403BG

Format:

Instant download

Description

The form titled Release of Lis Pendens is essential for individuals or entities involved in a foreclosure process in Texas. It serves as a formal notice to cancel an existing lis pendens, which is a public record indicating that a property is subject to litigation. The release of such notice allows interested parties to understand that the litigation surrounding the property has concluded or been resolved. To complete this form, users must provide specific details about the original lis pendens, including the location where it was recorded and the date of release. Legal professionals such as attorneys, paralegals, and legal assistants benefit from this form by ensuring that necessary legal notifications are accurately recorded and that their clients' interests are protected. Furthermore, the form is also useful for owners and partners who wish to clear any public claims against their property. Proper filing ensures compliance with local regulations, facilitating a smoother transition back into ownership rights without any encumbrances. Ultimately, this form is a critical tool for effectively managing property-related legal matters in Texas.

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FAQ

Section 12.0071 - Motion to Expunge Lis Pendens (a) A party to an action in connection with which a notice of lis pendens has been filed may: (1) apply to the court to expunge the notice; and (2) file evidence, including declarations, with the motion to expunge the notice.

The effect of foreclosure is to cut off and eliminate junior liens, including mechanic's liens, but not tax obligations. Most foreclosures in Texas are non-judicial.

Step 2: Notice of Sale or Order of Sale In a judicial foreclosure, once the court has issued their judgment granting the foreclosure, the clerk of the court will prepare an Order of Sale directing the sheriff or constable to sell the property at auction.

Most foreclosures are non-judicial types. This means court approval isn't required and speeds up the process. Many Texas foreclosures take 160 days. This is much faster than the national average of 922 days in foreclosure for the second quarter of 2021.

In a non-judicial foreclosure, after the 20-day "right to reinstate" period has expired and at least 21 days before the sale, the servicer must provider the borrower with a Notice of Sale, letting them know the date and earliest time of the sale.

In Texas, there are three ways in which a lienholder can foreclose on a property: Judicial Foreclosure. A judicial foreclosure requires the lienholder to file a civil lawsuit against the homeowner. Non-Judicial Foreclosure. Expedited Foreclosure. Court Rules.

A lis pendens has no life of its own apart from the lawsuit that underlies it. If there is no lawsuit, there can be no valid lis pendens. “A lis pendens operates only during the pendency of the underlying suit, and only as to those matters that are involved in the suit.

Pre-foreclosure: This is a property where the lender has notified the borrower, or homeowner, that they are in default but the property hasn't yet been offered at an auction.

Lis Pendens Texas and Property Code Property Code Section 12.007(a) allows the party seeking relief to file a Lis Pendens during the pendency of an action involving title to real property, the establishment of an interest in real property, or the enforcement of an encumbrance against real property.