Texas Property Code

§ 51.005 — JUDICIAL OR NONJUDICIAL FORECLOSURE AFTER JUDGMENT AGAINST GUARANTOR--DEFICIENCY

PR § 51.005Title 5. EXEMPT PROPERTY AND LIENS · Part B. LIENS · Ch. 51. PROVISIONS GENERALLY APPLICABLE TO LIENS

Statute text

(a)This section applies if:

(1)the holder of a debt obtains a court judgment against a guarantor of the debt;

(2)real property subject to a deed of trust or other contract lien securing the guaranteed debt is sold at a foreclosure sale under Section 51.002 or under a court judgment foreclosing the lien and ordering the sale;

(3)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; and

(4)a motion or suit to determine the fair market value of the real property as of the date of the foreclosure sale has not been filed under Section 51.003 or 51.004.

(b)The 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 or the date the guarantor receives actual notice of the foreclosure sale, whichever is later. 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:

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Legislative history

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