What type of foreclosures in Texas are classified as judicial?

In Texas, foreclosures stemming from home equity loans are categorized as judicial foreclosures. This process involves the lender having to go through the court system to reclaim the property when the borrower defaults on the loan. This differs from other forms of foreclosure in Texas, such as those for unpaid property taxes or for most residential loans, which usually utilize a non-judicial foreclosure process allowing lenders to sell properties without court intervention due to a power-of-sale clause.

Home equity loans require judicial action because they must adhere to strict state regulations designed to protect borrowers, ensuring that the lender follows due process when seeking to foreclose. The judicial process provides a structured legal framework, giving the borrower the opportunity to contest the foreclosure in court, which is not typically the case with non-judicial foreclosures.

For other types of foreclosures mentioned, like those for unpaid property taxes or commercial properties, they often follow non-judicial processes where the lenders do not need to engage the court to conduct the foreclosure, making them distinct from those involving home equity loans.