What is the statute of limitations in Texas for deficiency judgments?

 
Texas law permits lenders up to five years to pursue a mortgage deficiency claim.
 
Up to now, most national mortgage companies servicing conventional first mortgages have not yet pursued deficiency judgments.  However this trend may change once lenders work their way through the foreclosure backlog.  Lenders will also sell their deficiency rights to third party lenders and collection firms. 
 
Since 2009, second mortgage lenders, private lenders and small regional banks have been aggressively pursuing deficiency judgments.  Banks that underwrote commercial loans to developers have also been pursuing deficiency judgments against developers who made personal guarantees.
 
If a lender is pursuing you for a deficiency judgment, it is best to hire an attorney to defend the deficiency.  In many cases, an attorney can use procedural defenses to defeat the claim, or at least minimize what might be paid in a negotiated settlement.
 

If you have any other questions about deficiency judgments, please contact us.