Texas Property Code

§ 51.004 — JUDICIAL FORECLOSURE--DEFICIENCY

PR § 51.004Title 5. EXEMPT PROPERTY AND LIENS · Part B. LIENS · Ch. 51. PROVISIONS GENERALLY APPLICABLE TO LIENS

Statute text

(a)This section applies if:

(1)real property subject to a deed of trust or other contract lien is sold at a foreclosure sale under a court judgment foreclosing the lien and ordering the sale; and

(2)the price at which the real property is sold is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency.

(b)Any person obligated on the indebtedness, including a guarantor, may bring an action in the district court in the county in which the real property is located for a determination of the fair market value of the real property as of the date of the foreclosure sale. The suit must be brought not later than the 90th day after the date of the foreclosure sale unless the suit is brought by a guarantor who did not receive actual notice of the sale before the date of sale, in which case the suit must be brought by the guarantor not later than the 90th day after the date the guarantor received actual notice of the sale. The fair market value shall be determined by the finder of fact after the introduction by the parties of competent evidence of the value. Competent evidence of value may include:

(1)expert opinion testimony;

(2)comparable sales;

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Legislative history

Added by Acts 1991, 72nd Leg., ch. 361, Sec. 1, eff. June 5, 1991.