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Once a Home Improvement Loan has been Written Off and sent to collections, what is the Statue of Limitations?

Houston, TX |

I had a Home Improvement Loan that was Written Off and sent to Collections. I was wondering what the statue of limitations is before they File for Foreclosure?

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Attorney answers 3


The foreclosure sale must be performed within 4 years after the cause of action accrues. On the expiration of the four year limitation period, the real estate lien and the power of sale to enforce the real property lien become void. see: Tex. Civ. P. & Rem. Code section16.035(d).

The lender can still sue for any payments that are not barred by the 4 years statute of limitations, but the lender cannot foreclose. see: Tex Civ. P. & Rem Code section 16.035(e).


I agree with Mr. MacInnis. Also, collectors will continue to try and collect long after the statute of limitations has run. Once a debt has been ratified, even after expiration of limitations period, (by partial payment or agreement), the limitations period is re-activated and runs again. This is a collection agency trick!


I agree with the other attorneys and would only add that the limitations period to foreclose on a property does not begin until final maturity of the note occurs. Thus, if you still had installments due, the 4 years period to foreclose does not start to tick until the last installment becomes due.

If this response was helpful, please mark it as helpful or as a best answer. The response provided herein is for informational purposes only and is not intended as legal advice, nor does it establish or intend to establish an attorney-client relationship. You should always speak with a licensed attorney regarding your legal rights before taking or not taking any particular action.

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