What Really Happens If You Fall Into Foreclosure

Hearing the word foreclosure is enough to make any homeowner’s stomach drop. In Dallas-Fort Worth, thousands of families face this situation every year. But most people don’t really know what happens once you fall behind and the foreclosure process begins.

The truth is: foreclosure doesn’t happen overnight. There are steps, timelines and most importantly options to stop it before it’s too late.

The Texas Foreclosure Process Explained

1. Missed Payments

After 30 days late, lenders report to credit bureaus.
You’ll start getting collection calls and warning letters.

2. Notice of Default

After 90–120 days, the lender sends a Notice of Default.
This is the official start of foreclosure.
It’s filed with Dallas County records.

3. Notice of Sale

You’ll receive a Notice of Sale at least 21 days before the foreclosure auction date.
The notice is posted at the courthouse and filed publicly.

4. Foreclosure Auction

The property is auctioned at the Dallas County courthouse.
If it sells, you lose ownership.
If it doesn’t, the bank takes it back (called “bank-owned” or REO).

5. Eviction

If you’re still living in the home, you’ll receive an eviction notice.

The sheriff can physically remove you if you don’t leave voluntarily.

How Foreclosure Impacts You

Credit score drop: 100–160 points (stays on report for 7 years).
Difficulty buying/renting: Landlords and lenders see foreclosure as a red flag.
Loss of equity: Any equity you built is usually gone.
Emotional toll: Stress, anxiety, and uncertainty about housing.

Options Before It Gets That Far

Loan Modification or Forbearance

Work with your lender to adjust payments or pause them temporarily.

Short Sale

Sell the property for less than what you owe, with lender approval.

Sell Fast for Cash

Companies like OT Home Buyers buy houses as-is, often in under 7 days.

Stops foreclosure.
Clears the debt with your lender.
Lets you walk away with dignity and less credit damage.

Final Thoughts

Falling into foreclosure is scary but it’s not the end. Knowing the process helps you act before it’s too late.

At OT Home Buyers, we’ve helped Dallas homeowners avoid foreclosure by buying their houses quickly, as-is, and with cash. If you’re facing notices from your lender, you still have time to take control.

👉 Request your free cash offer today or call (682) 267-7741 to stop foreclosure before it’s too late.