A Texas borrower receives a notice of foreclosure sale. She discovers that the lender never sent a notice of default and intent to accelerate before scheduling the sale. Under Texas law, what effect does this have on the foreclosure?
Correct Answer
C) The foreclosure sale is potentially voidable because the lender must first send a notice of default and opportunity to cure before issuing the notice of sale
Under Texas Property Code §51.002(d), the lender must send a notice of default and intent to accelerate, giving the borrower at least 20 days to cure the default, before sending the notice of foreclosure sale. Skipping this step is a procedural defect that can render the foreclosure sale voidable.
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