Can You Get Your House Back After Foreclosure in Texas? Understanding the Right of Redemption

Losing property at a foreclosure sale does not always mean that the former owner has permanently lost the property.

In some Texas foreclosures, the law gives the former owner a limited period to redeem the property after the foreclosure sale. In other words, the owner may be able to recover the property by paying the amounts required by law before the redemption deadline expires.

But Texas does not provide a general right of redemption after every foreclosure.

The answer depends heavily on what kind of lien was foreclosed.

As a general rule:

• A property-tax foreclosure may carry a redemption period of either two years or 180 days, depending on the property.
• A foreclosure of certain homeowners' association assessment liens may carry a 180-day redemption period.
• An ordinary mortgage foreclosure generally does not provide the homeowner with a statutory post-foreclosure redemption period under Texas law.

Those differences can be enormously important after a foreclosure sale.

What Is the Right of Redemption After Foreclosure in Texas?

A right of redemption is a statutory right allowing a person with the required interest in property to recover it after a foreclosure sale by satisfying specified legal requirements.

This is different from stopping a foreclosure beforethe sale occurs.

Redemption becomes relevant after the property has already been sold.

Texas provides significant post-sale redemption rights in certain property-tax and property-owners'-association foreclosures. The applicable deadline, required payment, and procedure depend upon the type of foreclosure involved.

Can You Redeem Property After a Texas Tax Foreclosure?

Often, yes.

Texas Tax Code § 34.21 provides a statutory right of redemption for property sold at a tax sale.

But the length of the redemption period depends upon the character of the property.

Two-Year Redemption Period for Homesteads and Agricultural Property

Under Texas Tax Code § 34.21(a), an owner generally has until the second anniversary of the date the purchaser's deed is filed for record to redeem qualifying property that was:

• the owner's residence homestead;
• land designated for agricultural use when the tax suit or application for warrant was filed; or
• a qualifying mineral interest.

This is one reason it is important to identify not merely the date of the foreclosure sale, but also the date the relevant deed was recorded.

180-Day Redemption Period for Other Property

Other real property sold at a Texas tax sale generally has a much shorter redemption period.

Texas Tax Code § 34.21(e) provides that the redemption right for property outside the longer-period categories generally must be exercised not later than the 180th day after the purchaser's or taxing unit's deed is filed for record.

This may include property such as:

• rental property;
• commercial real estate;
• investment property; and
• non-homestead vacant land.

The difference between 180 days and two years is obviously substantial. A former owner should therefore determine the property's legal classification and the deed-recording date rather than assuming that every Texas tax foreclosure carries the same deadline.

How Much Does It Cost to Redeem Property After a Texas Tax Sale?

Redemption is not simply a matter of repaying the foreclosure-sale price.

When property covered by Texas Tax Code § 34.21(a) is purchased by someone other than a taxing unit, the statute generally requires payment of the amount bid for the property, the deed-recording fee, qualifying taxes, penalties, interest and costs paid by the purchaser, plus a statutory redemption premium.

For qualifying property redeemed during the first year, the premium is generally 25% of the applicable aggregate amount.

For qualifying property redeemed during the second year, the premium generally increases to 50%.

For property subject to the shorter 180-day redemption period, § 34.21(e) generally limits the redemption premium payable to a purchaser other than a taxing unit to 25%.

Example of a Texas Tax-Sale Redemption

Suppose qualifying homestead property is sold at a tax sale to a private purchaser for $80,000.

Ignoring additional reimbursable amounts for purposes of a simplified example, a 25% redemption premium on $80,000 would add $20,000. A 50% premium would add $40,000.

But an actual redemption calculation should not be based on the purchase price alone. Taxes, recording fees and qualifying costs may also affect the amount required.

The statutory formula—and the facts of the particular sale—matter.

Can You Redeem a Home After an HOA Foreclosure in Texas?

Texas law also provides a right of redemption following certain foreclosures of property owners' association assessment liens.

Texas Property Code § 209.011 provides that the owner of property in a residential subdivision, or a lienholder of record, may redeem the property from a purchaser following foreclosure of a property owners' association's assessment lien.

For the property owner, the deadline is generally not later than the 180th day after the date the association mails the written post-foreclosure notice required by Texas Property Code § 209.010.

That distinction is important: the statute ties the redemption period to the association's mailing of the required notice, rather than simply stating that the owner has 180 days from the foreclosure-sale date.

Section 209.010 generally requires the association to send written notice of the foreclosure sale to the owner and qualifying lienholders not later than 30 days after the sale.

Why Do Some Sources Mention 90 Days for HOA Redemption?

Texas Property Code § 209.011 contains a separate 90-day rule concerning a lienholder of record.

A lienholder generally may not exercise its redemption right until 90 days after the association mails the required notice, and then only if the property owner has not already redeemed the property.

That should not be confused with the owner's redemption deadline.

For an owner covered by § 209.011, the statute generally provides a redemption period lasting until the 180th day after the association mails the required notice.

How Much Must You Pay to Redeem After an HOA Foreclosure?

The answer depends partly upon whether the property owners' association itself purchased the property or whether it was purchased by someone else.

Texas Property Code § 209.011 contains detailed payment requirements.

Depending on the circumstances, the amounts involved may include:

• amounts owed to the association;
• interest;
• foreclosure costs and reasonable attorney's fees;
• assessments levied after the foreclosure;
• certain reasonable costs associated with the property;
• the foreclosure purchase price;
• deed-recording fees; and
• certain taxes or other amounts paid by the purchaser.

Because the statutory formula differs depending upon who purchased the property, an owner considering redemption should determine the identity of the purchaser before attempting to calculate the required amount.

Can You Redeem Your House After a Mortgage Foreclosure in Texas?

Usually, not under a general Texas statutory right of redemption.

This is one of the most important distinctions in Texas foreclosure law.

Texas law provides specific redemption rights for tax sales and certain HOA assessment-lien foreclosures, but an ordinary foreclosure by a mortgage lender or deed-of-trust holder generally does not give the former homeowner a comparable statutory period after the sale in which the homeowner can simply buy the property back.

That means a homeowner facing an ordinary mortgage foreclosure usually needs to address available options before the foreclosure sale occurs.

Other legal issues can sometimes arise after a mortgage foreclosure—for example, disputes concerning the validity of the foreclosure procedure—but challenging a foreclosure is different from exercising a statutory right of redemption.

Does a Tax-Sale Redemption Right Let the Former Owner Stay in the Property?

Not necessarily.

Texas Tax Code § 34.21(h) expressly provides that the existence of the tax-sale redemption right does not itself give the former owner the right to use or possess the property, or to receive rents, income or other benefits from it, while the redemption period remains open.

In other words, having time left to redeem should not be confused with continuing to own or possess the property as though the foreclosure sale never happened.

How Do You Redeem Property After a Texas Tax Sale?

Texas Tax Code § 34.21 provides specific procedures for redemption.

The first practical step is usually to identify the foreclosure purchaser and determine exactly when the relevant deed was filed for record. The owner must then determine the applicable redemption period and calculate the amount required by the statute.

Section 34.21(i) also allows an owner entitled to redeem to make a written request to the purchaser—or, when applicable, the taxing unit—for an itemization of amounts spent as costs on the property. The statute requires the recipient to provide the written itemization within 10 days after receiving the request, and only amounts included in that itemization may be allowed as costs for redemption purposes.

Texas law also provides an alternative mechanism in certain circumstances when the owner cannot locate the purchaser, the purchaser is outside the county, the parties cannot agree upon the amount due, or the purchaser refuses to provide a quitclaim deed. Section 34.21(f) permits payment to the county assessor-collector when the statutory affidavit and other requirements are satisfied.

The procedure therefore involves considerably more than simply sending the foreclosure purchaser a check.

What Happens to the Property While the Redemption Period Is Running?

The existence of a redemption right can affect both the former owner and the foreclosure purchaser.

In an HOA foreclosure governed by Texas Property Code § 209.011, a purchaser generally may not transfer ownership of the property to someone other than the redeeming lot owner during the redemption period.

And when occupied property is purchased through foreclosure of a property owners' association assessment lien, § 209.011(a) requires the purchaser to pursue a forcible entry and detainer action under Chapter 24 to recover possession.

Tax-sale purchasers face a different statutory framework, including the former owner's potential redemption rights under Texas Tax Code § 34.21.

Anyone purchasing property at a foreclosure sale should therefore determine whether the property remains subject to redemption before treating the acquisition like an ordinary real-estate purchase.

What Are Common Problems With Texas Foreclosure Redemption?

Redemption law is unusually deadline-sensitive.

Problems can arise when a former owner:

• assumes the wrong redemption period applies;
• calculates the deadline from the wrong event;
• fails to distinguish a mortgage foreclosure from a tax or HOA foreclosure;
• miscalculates the amount required to redeem;
• overlooks reimbursable taxes, fees, interest or costs;
• fails to identify the correct purchaser; or
• waits until the end of the redemption period to investigate the statutory requirements.

The safest approach is to determine the type of foreclosure, applicable statute, purchaser, relevant recording or notice date, and required redemption amount as early as possible.

Frequently Asked Questions About the Texas Right of Redemption

How long do I have to redeem my house after foreclosure in Texas?

It depends on the foreclosure. A qualifying residence homestead or agricultural property sold at a tax sale generally receives a two-year redemption period measured from the recording of the applicable deed. Other property sold at a tax sale generally receives 180 days. Certain HOA assessment-lien foreclosures generally provide an owner 180 days after the association mails the required post-sale notice. Ordinary mortgage foreclosures generally do not carry a comparable Texas statutory redemption period.

Is the Texas tax-sale redemption period measured from the foreclosure date?

Not necessarily. Texas Tax Code § 34.21 generally measures the applicable redemption period from the date the purchaser's or taxing unit's deed is filed for record.

Is the HOA foreclosure redemption period 90 days or 180 days in Texas?

For an owner covered by Texas Property Code § 209.011, the general deadline is 180 days after the association mails the required notice of sale. The statute's 90-day provision relates to when a lienholder of record may begin exercising its redemption right if the owner has not already redeemed.

Can I buy my house back after the bank forecloses in Texas?

Texas generally does not provide the same statutory post-sale redemption right after an ordinary mortgage foreclosure that it provides after qualifying tax and HOA foreclosures. Whether another remedy exists depends on the facts and legal validity of the particular foreclosure.

Does redemption cancel the foreclosure sale?

A properly completed statutory redemption restores the property to the person entitled to redeem, subject to the applicable statutory framework. Because title, existing liens, documentation and payment requirements can become complicated, the legal consequences should be evaluated in the context of the particular foreclosure.

The Bottom Line: Can You Get Foreclosed Property Back in Texas?

Sometimes—but you need to know what kind of foreclosure occurred.

Texas provides substantial redemption rights after certain property-tax foreclosures and HOA assessment-lien foreclosures. Those rights can allow a former owner to recover property even after a foreclosure sale has taken place.

But the deadlines are different, the payment requirements can be substantial, and ordinary mortgage foreclosures generally do not carry the same statutory right.

If property has already been sold at foreclosure, determining the type of foreclosure, applicable redemption deadline, purchaser, and amount required should be done promptly. Waiting can turn a potentially valuable statutory right into an expired one.

This article provides general information about Texas law and is not legal advice. Foreclosure and redemption rights depend on the particular property, lien, sale, notices, and applicable law.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.