Texas Process of Foreclosing on an Assessment Lien

The statutory framework governing the foreclosure of condominiums resides within Chapter 82 of the Texas Property Code. Pursuant to Section 82.113(d) of TUCA, the process for effectuating the sale of the property through a foreclosure is delineated by Texas Property Code Section 51.002, which is the same statutory provision utilized for foreclosure and power of sale in connection with single family residences. That being said, Section 82.113(d) of TUCA also allows the Condominium Association to amend or alter the procedures set forth by Section 51.002 through its Declaration.

Section 51.002 requires that 20 days notice of foreclosure be given to a unit owner, with opportunity to cure the default giving rise to the foreclosure. Then, upon expiration of the 20-day notice, a “Notice of Sale” must be posted at the county courthouse at least 21 days prior to the sale, thereby alerting the public of when and where the sale is to occur. If there are other lien holders with an interest in the property (for example, a bank holding a mortgage), that lien holder may demand that the Association provide written notice prior to any foreclosure. At any time prior to the sale, the unit owner may halt the foreclosure by paying all amounts then due and owing (Section 82.113(j)). Foreclosure sales must take place on the first Tuesday of each month between 10 am and 4 pm. The Condominium Association may bid on the property at the sale.

If the unit was used as a residence, and the Condominium Association purchases the unit at the sale, the unit owner will still have a 90-day window to “redeem” the property by paying all amounts then due and owing, plus interest on that amount from the date of the sale to the date of the redemption, in addition to reasonable costs and attorneys’ fees incurred in foreclosing the lien (Section 82.113(g)).

After the sale, the former owner may not simply vacate the unit upon the request of the Association, In such instances, a Condominium Association should be prepared to bring a forcible detainer action in a Justice of the Peace Court to evict the unit owner if they or their tenant refuses to vacate.