They cannot foreclosure so long as homestead, but it is valid. Depending on when the lien was perfected, you may need to get a release. Best to hire a consumer attorney in your region
As long at the loan did not involve purchase money for your homestead, the creditor does not have a valid lien against your homestead. I trust that the judgment was not against you as well. Either way, your homestead would not be subject to an ordinary creditor's judgment lien.
You should write a letter by certified mail to the lien claimant to demand that the lien be released, pointing out that the property is your homestead. If the lien claimant does not voluntarily release the lien, the creditor could be liable for a fraudulent lien under Chapter 12 of the Texas Civil Practice & Remedies Code. Chapter 12 can award damages of $10,000 or actual damages whichever is greater, plus attorney's fees. Point that out in the letter.
You can also demand that the lien be released under Section 53.160 of the Texas Property Code, which provides for a summary procedure (no trial necessary) for the removal of an invalid lien on someone's homestead.
I have a lot of mechanic's lien materials (the law, notice forms, deadline charts, etc.) at my web site, The Construction Report. The web address for The Construction Report is:
You should file your own partial release of judgment lien. Here is an article I wrote about this specific procedure as well as many other articles about debt judgments in Texas. http://www.judgmentrelease.com/articles/Partial-Release-of-a-Judgment-Texas.htm
My comments are not legal advice and are for informational purposes only.