Step 2 – Notice
Step 2 in foreclosing on a security interest requires you to give proper notice to the debtor…
After a review of the underlying documents, the proper notices of intent to accelerate payment of the debt are delivered to the mortgagor by the mortgagee or trustee. If this notice is waived, the mortgagee then decides if it is necessary to appoint a substitute trustee. This new trustee is almost always the attorney that will conduct the foreclosure sale. Such appointment is set forth in a document appointing the new substitute trustee which document is then filed in the deed records of the county in which the real property is located.
The substitute trustee then prepares a notice of foreclosure sale and notice of acceleration of the debt. The notice of sale describes the debt and the date, place, and time of the prospective foreclosure sale. This document must be filed in the county in which the property is located at least 21 days prior to the foreclosure sale date. Pursuant to Texas law, the foreclosure sale date is always the first Tuesday of the any month.
The notice of acceleration describes the default as well as the time and place of the foreclosure sale. There is also a copy of the notice of foreclosure sale included with the notice of acceleration. This notice must be delivered to the mortgagor and any other guarantors or obligors on the debt at their most current address in the mortgagee’s records. This notice must be postmarked no later than 21 days prior to the sale date. It is important to note that once the property is posted for foreclosure and the debt is accelerated, the mortgagee must not accept from the mortgagor any partial payments prior to the foreclosure sale date. Only the entire amount owed should be accepted after acceleration because to accept partial payments would allow the mortgagor grounds to obtain a temporary restraining order stopping the foreclosure sale.