Tax sale vs. mortgage foreclosure in Texas

Please read this first. Educational site only. Not a law firm, not a HUD counselor, not the tax office. This page is not legal advice.

Updated September 2026. Educational only — not legal advice.

In the Houston area both mortgage trustee sales and property-tax sales often land on the same first Tuesday. They are different cases, different notices, and different offices. Paying one does not automatically stop the other. Dates: 2026 first Tuesdays.

Mortgage trustee sale

The lender (or substitute trustee) enforces the deed of trust. Notices come from the servicer or trustee. Process: how foreclosure works in Texas. Place of sale is on that notice — Harris is usually Bayou City Event Center; other counties have their own rooms or steps.

Property-tax sale

The county (through a sheriff or constable, after a tax lawsuit and judgment) enforces unpaid property taxes. Notices look like “notice of sheriff’s sale” or constable sale, with a cause number and taxing units (school district, county, city). Minimum bids are tax, penalties, and costs — not your mortgage payoff.

Tax sales can be in the same building as mortgage sales (Harris) or in a courtroom (Brazoria) or online (Galveston and Montgomery have moved many tax sales to RealAuction). Always read that notice.

Why people mix them up

Same first-Tuesday calendar (and the January 1 / July 4 Wednesday rule)
Same event center in Harris County for many lists
Escrow: if the servicer pays taxes, a tax sale is less common until escrow breaks; if you pay taxes yourself, a missed year can run on a separate track

Redemption and title

Texas tax sales often come with a redemption period after the sheriff’s deed (longer for homestead / agricultural property than for other property). A standard mortgage trustee sale generally does not give a long post-sale redemption. Do not assume you can “buy the house back” the same way after a bank auction. Ask a Texas attorney or legal aid about your notice.

What to do

Sort the stack: bank/trustee letters vs. tax office / constable / law-firm tax letters.
Mortgage: servicer loss mitigation + HUD counselor. Tax: the law firm and tax office named on that notice, plus a counselor.
Harris County homeowners can start housing resources at ownthehou.org/resources. Tax Assessor-Collector pages explain tax-sale day; they are not HUD counselors.
Who to call for HUD and legal aid.

This site does not take cases and does not bid at auctions.

Frequently asked questions

If I catch up the mortgage, is the tax sale off?

Not automatically. Ask the tax-sale attorney or tax office whether that judgment is paid.

If I pay the taxes, will the bank stop?

Not automatically. The deed of trust is a different lien.