Texas Commercial Law Firm
Foreclosure
2. Renewals and extensions. When preparing to foreclose a lien which has been created through renewal and extension of an earlier lien in title, it is highly recommended that the foreclosure be of the original deed of trust lien which was renewed and extended. The original deed of trust lien should be foreclosed to cut off any intervening liens which are subject to termination by foreclosure. Even if a title policy was obtained at the time of renewal and extension, it is still recommended that the original deed of trust lien be foreclosed. After all, title companies sometimes miss liens and the rationale for not relying on a title policy in the deed in lieu situation (see discussion supra) will likewise apply in this situation. The safest route therefore, usually is to foreclose under the terms of the earliest power of sale granted.
3. Need all addresses. Sending notice to the borrower at the address specified in the deed of Trust will not be sufficient if the lender's records reflect a more recent address. Lido International v. Lambeth, 611 S.W.2d 622 (Tex. 1981). While a lender is required to send notice to the borrower's address specified in the deed of trust as well as every other address of the borrower of which the lender has actual notice, failure to send notice to the borrower's most recent address which was unknown to the lender will not invalidate a sale. Burnett v. Anderson, 543 S.W.2d 15 (Tex. Civ. App.--Dallas 1976, no writ).
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