By Michael Pezzulli
Business and Consumer Litigation Practice Skills Course presented to The State Bar of Texas, June 2016
Texas is extraordinarily lender-friendly when compared to other states. The ease with which a lender can gain title to a borrower’s real estate through nonjudicial foreclosure in Texas is unrivaled.
Lenders must still strictly comply with certain statutory and judicially imposed requirements – and when they fail to do so, the borrower can challenge an attempted foreclosure.
The main areas of attack, and alternatives available to borrowers to keep a title or regain it from the lender, are covered in this paper. In addition, I analyze the actions a lender must take to successfully conclude a foreclosure.
The primary focus of this paper is on the challenges to a posted foreclosure prior to actual foreclosure. Consideration is also given to appeals when a temporary injunction is denied, and post-sale challenges for rescission or wrongful foreclosure. UCC Article 9, which speaks to security interests in personal property, is presented as well – specifically, security interest attachment, perfection repossession and liquidation.