Behind on your mortgage? Facing threats of foreclosure? You’re not alone—and it’s not too late to regain control.
For many Austin homeowners, falling behind on payments feels overwhelming. But if you’re in pre-foreclosure, you still have time to act. Whether you’ve just received a notice or you’re nearing the auction date, selling your home might be the smartest financial decision you can make right now.
This guide covers everything you need to know about:
- What pre-foreclosure really means in Texas
- How much time you have (and why every day matters)
- Selling options based on your situation
- How a trusted home-buying company can help
- What happens if you wait too long
- FAQs that every homeowner in pre-foreclosure should read
🧭 Not sure what stage you’re in?
👉 Read our full guide to how pre-foreclosure works in Texas for a detailed timeline.
What Does Pre-Foreclosure Mean in Texas?
Pre-foreclosure is the stage after you’ve missed one or more mortgage payments, but before the bank actually forecloses on your home. In Texas, this period moves quickly—and quietly. Lenders aren’t required to go to court, so foreclosure can happen in as little as 41 days from the time you’re officially notified.
Here’s why this matters:
Until the foreclosure sale happens, you still own the property. That means you still have the right—and the opportunity—to sell it.
Understanding the Texas Foreclosure Timeline
Let’s break down how fast this can unfold:
- Missed Payments Begin
After 1–2 missed payments, your lender may begin calling, sending letters, or offering repayment assistance. - Notice of Default (NOD)
This is a formal warning that your loan is in default. It may come after 60–90 days of nonpayment. Once filed, it becomes public record. - 20-Day Notice to Cure
Texas law gives homeowners 20 days to bring the loan current. If you don’t resolve the issue, the foreclosure process continues. - Notice of Sale
After the 20 days, the lender can schedule your home for public auction—held on the first Tuesday of the following month. - Foreclosure Sale (Auction)
If the loan isn’t resolved by the auction date, the home is sold to the highest bidder or taken back by the bank.
🧠 Learn more about each stage in our Pre-Foreclosure Timeline Breakdown.
Can You Sell a Home in Pre-Foreclosure?
Yes, and in many cases, it’s the best option.
Because you’re still the legal owner until the foreclosure sale, you have the right to sell your home at any point during pre-foreclosure. If you’re able to sell before the auction:
- The foreclosure is canceled
- Your loan gets paid off
- You protect your credit from long-term damage
- You may walk away with equity in your pocket
In fast-moving markets like Austin, this can be a strategic way to get out from under a financial burden without long-term consequences.
Your Selling Options in Pre-Foreclosure
Let’s explore each path available, along with pros, cons, and timing factors:
1. List With a Real Estate Agent
✅ Good if you have 60–90 days or more before auction
❌ Too slow for urgent situations
❌ Requires repairs, showings, and buyer financing
❌ May fall apart during escrow
2. For Sale by Owner (FSBO)
✅ Full control over pricing and negotiations
❌ Complex paperwork
❌ High risk of delays
❌ Limited buyer pool, especially in pre-foreclosure cases
3. Short Sale (If You Owe More Than the Home Is Worth)
✅ May avoid foreclosure even with negative equity
❌ Requires lender approval
❌ Can take months to complete
❌ You likely walk away with $0
4. Sell to a Local Cash Home Buyer
✅ Fastest option (often 7–14 days)
✅ No repairs, no showings
✅ No commissions or fees
✅ Ideal for urgent pre-foreclosure timelines
✅ Discreet and straightforward
Want to explore this option? Get a free cash offer today from a local Austin buyer.
How Home Buyers Help in Pre-Foreclosure Situations
Companies like CTX Cash Home Buyers work with homeowners every day who are overwhelmed, behind on payments, or facing foreclosure.
Here’s how it works:
Step 1: Contact and Consultation
We discuss your situation confidentially—how far behind you are, your mortgage balance, the condition of the home, and what your goals are.
Step 2: We Make an Offer
We’ll evaluate your home as-is and make a fair, no-pressure cash offer. No need to clean, repair, or show the house.
Step 3: We Handle the Paperwork
We work with title companies and even communicate with your lender to ensure a smooth closing.
Step 4: You Choose Your Exit
Once you accept, we close quickly and handle the details. If there’s any equity left after the loan is paid off, that’s yours to keep.
⚠️ What Happens If You Wait Too Long?
If the foreclosure auction happens before you act:
- You lose all rights to the home
- You likely lose any equity
- Your credit takes a major hit—foreclosure can stay on your record for 7 years
- Future homeownership or even renting becomes harder
- You may face eviction from the new owner
The earlier you act, the more control you have.
✅ Final Thoughts: Act Early. Protect Your Future.
If you’re in pre-foreclosure in Austin, you don’t have to let the bank dictate what happens next.
Selling your home can be a smart, clean exit—especially if you’re already emotionally and financially drained.
We know this isn’t just a house. It’s your home, your equity, your future. And we’re here to help you protect it.
📞 Contact us now for a free, private consultation. We’ll walk you through your options—no pressure, no commitment.
👉 Stop foreclosure in Austin fast with a cash home sale
🧠 Frequently Asked Questions: Selling in Pre-Foreclosure (Austin, TX)
1. Can I sell my house after a Notice of Default has been filed?
Yes. You remain the legal owner and can sell anytime before the foreclosure auction.
2. What if I have little or no equity in my home?
You may still be able to sell. A short sale is possible, or some cash buyers will take over the mortgage depending on the situation.
3. Can I stop foreclosure once it’s scheduled?
Yes—but it depends on timing. If your lender receives full payment before the sale (including from a buyer), the foreclosure is canceled.
4. How fast can a home sell in pre-foreclosure?
Cash buyers can typically close in 7–14 days, much faster than traditional listings.
5. Will I owe anything after I sell?
If your home sells for more than the mortgage, you keep the difference. If it sells for less, a lender might pursue a deficiency judgment—but that’s less common in primary residence sales.
6. Can I work with a cash buyer and still explore other options?
Yes. Getting a no-obligation offer doesn’t lock you in. It’s often smart to explore multiple paths at once.