Texas mortgage servicing for private lenders
Everything that matters about servicing Texas mortgage notes, in one place. Cited, current, and kept up to date.
WHAT THIS PAGE IS
Servicing a Texas note covers payment posting, escrow for taxes and insurance, borrower statements, IRS 1098/1099 reporting, and default and non-judicial foreclosure servicing under Tex. Property Code §51.002. Servicing runs $35/month non-escrowed ($40 escrowed), with a one-time $150 setup.
Moat publishes a flat rate card: a one-time $150 setup per loan, then $35/month for a non-escrowed note or $40/month escrowed, with a 50/50 late-fee split. There is no contract; 30-day notice to terminate. See the full Texas note servicing fee schedule.
One place for everything that matters when you service a Texas mortgage note: how foreclosure works here, what homestead law protects, how to move a loan from another servicer, the state licensing rules, and how borrower communication stays compliant. Each topic below links to a deep guide.
KEY TOPICS
Six topics that define Texas mortgage servicing
FORECLOSURE
Texas non-judicial foreclosure
Texas runs the fastest non-judicial foreclosure regime in the country under Tex. Property Code §51.002. The statutory floor is 41 days from first formal notice to courthouse sale: a 20-day cure period under the deed of trust plus a 21-day Notice of Sale that must be posted at the courthouse, filed with the county clerk, and mailed to the borrower. Sales happen on the first Tuesday of each month between 10:00 a.m. and 4:00 p.m. at the county courthouse. In practice, most private-lender foreclosures run 60 to 120 days because lenders allow a delinquency to develop before declaring default and the next available first Tuesday may be three to five weeks out. Sloppy notice work is the most common reason a sale gets set aside on appeal, so most lenders use Texas-experienced trustee firms; trustee fees vary by firm and county.
HOMESTEAD
Homestead protections and the purchase-money exception
Texas homestead protections under Tex. Const. Art. XVI §50 protect the homestead from forced sale for most debts, but the constitution lists explicit exceptions. A purchase-money lien (the lien you took to finance the original purchase of the property, including seller-financed first liens) is the first exception. Refinances of purchase-money debt, property taxes, owelty of partition, mechanic’s liens with proper consent, and home equity loans under §50(a)(6) are also on the exception list. Home equity loans carry their own procedural rules under §50(a)(6) that differ from standard §51.002 foreclosure (cure periods are different, notice requirements are different, the timeline is longer). For a standard purchase-money seller-financed first lien on a Texas homestead, foreclosure proceeds under the regular §51.002 mechanics.
LICENSING
Texas SML licensing and the 2024–2026 rule changes
The Texas Department of Savings and Mortgage Lending reorganized its mortgage-servicer rules effective November 23, 2024, moving the substantive rules from Title 7 Chapters 78–81 into the new Chapters 55–59. The reorganization was largely structural but consolidated several notice obligations and tightened recordkeeping standards. Additional changes take effect January 1, 2026, including the electronic surety bond requirement at 7 TAC §58.107. Self-servicers of significant Texas-residential volume should evaluate whether the new bonding and registration rules apply. Moat is a licensed Texas mortgage servicer, NMLS 1419346, and carries the required electronic surety bond, so the new bonding and registration obligations are Moat’s to carry.
TRANSFERS
Switching servicers under RESPA
The federal Real Estate Settlement Procedures Act at 12 USC §2605, implemented by Regulation X at 12 CFR §1024.33, sets the framework for a servicing transfer. The old servicer must give the borrower at least 15 days notice before the effective transfer date, the new servicer must give notice not more than 15 days after, and a combined notice signed by both is permitted. For 60 days after the effective date, any payment a borrower sends to the old servicer must be forwarded to the new servicer without late fee or negative credit reporting. On the Moat side, boarding typically takes 5–10 business days from form submission to active servicing, with an optional $50 expedite per loan for a 48-hour turnaround. We do not charge a separate transfer fee; the standard $150 setup fee per loan applies as on any new boarding.
BORROWERS
FDCPA-respectful borrower operations
Servicer-borrower communications happen under several overlapping rules: the federal Fair Debt Collection Practices Act for collection-style contact and RESPA for periodic statements. Our standard is contractual notices that say what the loan documents require them to say, no harassment-style outreach, and clear written explanations of options before any default declaration. Borrowers we service can reach a HUD-approved counselor at no cost through consumerfinance.gov. We are the servicer, not the lender, so any change to a loan’s terms is the lender’s decision. Moat does not promise specific borrower outcomes.
DEEPER READING
In-depth guides and reference
Long-form pieces for when you need the full picture instead of a summary.
In-depth guide
Texas Foreclosure for Private Lenders
~22 minute read. The full §51.002 timeline, homestead, acceleration, bankruptcy stay, the 2024–2026 SML changes, and the SB 43 / Chapter 159 wrap regime in one place.
All guides
All Texas Mortgage Servicing Guides
The full guides library. In-depth reference on Texas private-lender topics, updated as the law changes.
FREQUENTLY ASKED
Texas mortgage servicing, answered
This is educational information, not legal, financial, or tax advice. Consult a licensed professional about your specific situation. Specific procedures depend on the loan documents, county practice, and applicable law as it stands at the time of the action. Moat Note Servicing, LLC (NMLS 1419346) is a Texas-licensed mortgage servicer based at 1602 N PanAm Expy, San Antonio, TX 78208.
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