A Texas homeowner with a VA loan defaults on payments. The lender initiates foreclosure. Under Texas law, which method of foreclosure is most commonly used for VA loans secured by a deed of trust?
Correct Answer
C) Non-judicial foreclosure under the deed of trust's power of sale clause, with sale on the first Tuesday of the month
Texas primarily uses non-judicial foreclosure under Texas Property Code §51.002. The deed of trust contains a power of sale clause allowing the trustee to sell the property. Texas foreclosure sales occur on the first Tuesday of the month at the county courthouse.
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Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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