The state of Texas is one of the states that were hit hardest by the mortgage crisis that the United States is currently facing. Though the rate of Texas bank foreclosures is pegged right now at only 1.6%, the situation is that there are an estimated 10,000 Texas bank foreclosures going on every month. This figure includes Houston bank foreclosures. This means that for every 809 households in Texas, one is facing some sort of Texas bank foreclosures procedure.

Texas has one of the toughest procedures for foreclosure in the United Sates. The whole process, which also applies to Houston bank foreclosures, can take only a little over a year to complete. In some cases, the entire process takes even less than a year. The process for foreclosures in Texas starts with the default, in which the lender would notify the borrower in writing that he or she needs to be updated with the mortgage payments. The period for the default can last anywhere between a month and a year, depending on the decision of the lender.

If the borrower fails to make his or her mortgage payments updated during the default period, then the process for Texas bank foreclosures calls for the start of the acceleration period. The acceleration period is a 30-day period wherein the lender would make a demand for the borrower to pay the amount owed in full plus interest. This can probably be the toughest part of the borrower's life if he or she really does not have the money to settle the mortgage payments. The borrower would need to pay up or sell the house in order to avoid having to face Texas bank foreclosures proceedings.

Once the 30-day acceleration period ends, the foreclosure period begins. In Texas, the foreclosure is only 21 days. At this point, the borrower would have to vacate the premises of the property to avoid being literally thrown out on the curb. That is really done in Texas; if the borrower does not leave the property at the end of the foreclosure period, the authorities would come to put his or her belongings out on the street and change the locks on the property. Most borrowers who defaulted on their mortgage payments would rather leave than be subjected to this part of the proceedings for Texas or Houston bank foreclosures.

At this period, a notice of sale or auction would be put up by the lender or the lender's trustee at the county courthouse 21 days before the date of the Houston bank foreclosure sale. The same notice would be mailed to the borrower at the same time. If the house is put up for auction, the lender or the trustee will award the ownership of the house to the highest bidder, with the title stripped of the junior liens on the property. The winning bidder, however, will have to deal with any senior liens that the property carries. If the winning bid happens to be more than what the borrower originally owed the lender, then the difference would be used to cover the junior liens on the property.