When a note you hold falls behind
We keep servicing it and send the notices your note requires. If you decide to foreclose, we coordinate the Texas non-judicial process by the book, where one wrong date can let a borrower set the sale aside.
HOW THIS WORKS
Moat onboards performing notes; we do not buy notes that are already in default. But good notes fall behind, and when one we service does, we keep servicing it and send the late and default notices your note requires.
If you decide to foreclose, foreclosure coordination is a service you can add. Texas is a non-judicial state: the trustee named in your deed of trust conducts the sale under Tex. Property Code §51.002, with no court involved, and one missed deadline or certified-mail receipt can let a borrower undo the sale. You make the decisions; we run the mechanics.
We do not carry a bad loan forever. If a delinquency drags on with no resolution and no instruction to foreclose, at about 120 days past due we will work with you to move the loan to another servicer.
What is non-judicial foreclosure in Texas?
Texas allows non-judicial foreclosure for any deed of trust that grants a power of sale, and nearly every modern Texas deed of trust does. The trustee runs the sale; there is no judge and no docket. Tex. Property Code §51.002 sets the floor: a 20-day notice to cure, a 21-day Notice of Sale, and a sale on the first Tuesday of the month at the courthouse. Miss a step and the clock can start over.
For the step-by-step clock, see the Texas foreclosure timeline. If the property is a homestead, Texas homestead law and foreclosure explains how a purchase-money lien forecloses on the same schedule.
Why the timing has to be exact
Servicing a performing loan is mostly recordkeeping. Foreclosure is procedural, and the procedure is unforgiving. The Notice of Default has to be clean. The Notice of Sale has to be posted and mailed on time. A missed certified-mail receipt, a notice posted on the wrong date, or a sale held outside the courthouse’s designated area can each give a borrower grounds to undo the sale.
So we track every notice, every certified-mail return, and every deadline against the §51.002 clock. Where the law protects the borrower, we follow it. Where it gives you a remedy, we use it.
HOW IT GOES
What we do, in order
A delinquency that runs all the way to a sale moves through these stages. Most never get there: the borrower cures, you accept a payoff, or you decide not to foreclose.
- 1
A payment is missed
When a payment is late or does not arrive, we send the late notice your note calls for and reach out to the borrower to find out what happened. Most short delinquencies are settled here, with a payment or a firm date to pay.
- 2
You decide what happens next
We keep you current on where the loan stands and what your note and Texas law allow. The decision is yours: keep working the delinquency, accept a payoff, or move toward foreclosure. We do not negotiate workouts or modifications. Any change to the loan’s terms is yours to grant, and we service the loan on whatever terms you set.
- 3
Notice of Default and Intent to Accelerate
If you elect to foreclose, we send the Notice of Default and Intent to Accelerate by certified mail, plus first-class and email where we have them. It states the amount needed to cure, the deadline to cure (commonly 20 days under the deed of trust), and what happens if the borrower does not. We track the certified-mail receipt and the cure clock.
- 4
Trustee referral and Notice of Sale
If the cure period passes, we refer the file to a Texas foreclosure trustee. The trustee prepares the Notice of Sale, posts it at the county courthouse, files it with the county clerk, and mails it to the borrower at least 21 days before the sale, as Tex. Property Code §51.002(b) requires. We coordinate the trustee, you, and the borrower throughout.
- 5
Sale day at the courthouse
Texas foreclosure sales are held on the first Tuesday of the month, between 10 a.m. and 4 p.m., at the county courthouse. The trustee runs the auction. You can appear with a credit bid or give the trustee your maximum; a third party can outbid in cash. The trustee issues a Substitute Trustee’s Deed to the high bidder.
- 6
After the sale
We deliver the trustee’s deed for recording and reconcile the proceeds (surplus goes to junior lienholders, then the borrower, under §51.002 and the deed of trust). If you took the property back, we hand off to eviction counsel and property management.
FEES + WORKFLOW
What changes when a loan goes delinquent
Stays the same
- Monthly servicing fee — unchanged at $35/mo non-escrowed ($40 escrowed)
- Late-fee split unchanged (50/50 per your servicing agreement)
- Standard borrower statements and IRS reporting
- Lender portal access and on-demand reporting
Adds to the file (only if you foreclose)
- Certified-mail costs (postage + return receipt)
- County clerk filing fees
- Trustee, attorney, and court costs
- Title work and recording costs post-sale
- Eviction or property-management costs if you take the property
- Foreclosure coordination fee (quoted up front)
Third-party costs are billed at cost as they are incurred. Foreclosure coordination is a separate, optional service, quoted before any work begins.
IF YOU ARE A BORROWER
Behind on a loan we service? Call us.
If Moat services your loan and you have missed a payment, get in touch. We can take your payment, explain exactly what your note requires, and tell you where the loan stands. We follow the notice rules in your loan and in Texas law. Any change to your loan’s terms is your lender’s decision, not ours, but the earlier you are in contact, the more time there is to work something out with them.
HUD-approved housing counselors offer free help. Find one at consumerfinance.gov.
FREQUENTLY ASKED
Default and foreclosure, answered
This is educational information, not legal, financial, or tax advice. Consult a licensed professional about your specific situation. Foreclosure procedure depends on the specific note, deed of trust, and county practice; for your situation, consult a Texas real estate attorney. Moat Note Servicing, LLC (NMLS 1419346) is a Texas-licensed mortgage servicer based in San Antonio, Texas.
Have a note that's fallen behind?
Tell us where it stands and what you want to do. We handle the servicing and, if you choose to foreclose, the Texas non-judicial process.