1. False. The lender is the mortgagee; the borrower is the mortgagor.

2. False. In Texas, there is no right of redemption following a mortgage foreclosure sale. Tax and property owner association foreclosures do include a right of redemption.

3. False. Texas law requires the foreclosing lender to follow strict guidelines to obtain the highest possible price at the sale but does not require that the home sell for fair market value. Failure to obtain fair market value impacts deficiency judgments (see question 8).

4. False. The lender can accelerate the note after giving the homeowner 20 days (not 21) to cure the amount in default.

5. True. Foreclosure sales may occur only on the first Tuesday of the month. There are 12 "first Tuesdays" during the year.

6. True. The lender's consent is required for a deed in lieu of foreclosure. This relates to Texas law regarding the transfer of title. For a deed to transfer title, five things are required:
   • The deed must be in writing.
   • The grantee must be named in the deed.
   • The grantor must sign.
   • The deed must contain a legal description of the property.
   • The deed must be delivered to and accepted by the grantee. A deed recorded by the grantor is presumed to never have been delivered and accepted.

7. False. The lender has two years to sue for a deficiency judgment, not four. The rule was changed from four years to two during the 1980s.

8. False. The homeowner can introduce evidence of fair market value of a home when the lender sues for a deficiency judgment.

9. True. The statute of limitations for foreclosure is four years. Collection of payments delinquent more than four years is barred.

10. True. However, if the property has been sold to a third party who has no knowledge of the irregularity, the only remedy available to the homeowner is damages.

For more information on foreclosure, see the Center's publication 825, "A Homeowner's Rights Under Foreclosure"; publication 652, "Force Sale Remedies"; and publication 613, "Transfer the Deed, Cancel the Debt: Alternative to Foreclosure."