Tex. Codes » Property Code · TITLE 5. EXEMPT PROPERTY AND LIENS · SUBTITLE B. LIENS · CHAPTER 51. PROVISIONS GENERALLY APPLICABLE TO LIENS
Texas Codes

Tex. Prop. Code § 51.006 (2026)

Deed-of-trust Foreclosure After Deed In Lieu Of Foreclosure

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Sec. 51.006. DEED-OF-TRUST FORECLOSURE AFTER DEED IN LIEU OF FORECLOSURE. (a) This section applies to a holder of a debt under a deed of trust who accepts from the debtor a deed conveying real property subject to the deed of trust in satisfaction of the debt.

(b) The holder of a debt may void a deed conveying real property in satisfaction of the debt before the fourth anniversary of the date the deed is executed and foreclosed under the original deed of trust if:

(1) the debtor fails to disclose to the holder of the debt a lien or other encumbrance on the property before executing the deed conveying the property to the holder of the debt in satisfaction of the debt; and

(2) the holder of the debt has no personal knowledge of the undisclosed lien or encumbrance on the property.

(c) A third party may conclusively rely upon the affidavit of the holder of a debt stating that the holder has voided the deed as provided in this section.

(d) If the holder elects to void a deed in lieu of foreclosure as provided in this section, the priority of its deed of trust shall not be affected or impaired by the execution of the deed in lieu of foreclosure.

(e) If a holder accepts a deed in lieu of foreclosure, the holder may foreclose its deed of trust as provided in said deed of trust without electing to void the deed. The priority of such deed of trust shall not be affected or impaired by the deed in lieu of foreclosure.

Added by Acts 1995, 74th Leg., ch. 1020, Sec. 1, eff. Aug. 28, 1995.

Notes of Decisions
Cited in 5 cases (1 in the last 5 years), 2007–2023 · leading case: Morrison v. Christie, 266 S.W.3d 89 (Tex. App.—Fort Worth 2008).
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Morrison v. Christie, 266 S.W.3d 89 (Tex. App.—Fort Worth 2008). · cites it 2× “See Tex. Prop.Code Ann. § 51.006. 12 . See Johnson v.”
Robert Paul Muir v. U.S. Bank Trust Nat'l Ass'n, No. 14-22-00596-CV (Tex. App.—Houston [14th Dist.] June 8, 2023). · cites it 3× “” Tex. Prop. Code Ann. § 51.006 . It provides, in pertinent part: (a) This section applies to a holder of a debt under a deed of trust who accepts from the debtor a deed conveying real property subject to the deed of trust in satisfaction of the debt.”
Cameron Life Ins. Co. v. Pactiv Corp., No. 13-05-00760-CV, 2007 Tex. App. LEXIS 6773 (Tex. App.—Corpus Christi Aug. 23, 2007). · cites it 4× “Cameron Life filed a cross-motion for summary judgment asserting that section 51.”
In re John Calce, No. 05-18-00647-CV (Tex. App.—Dallas June 4, 2018). “Nothing in this Agreement will be deemed to waive or release any rights to void the Deed thatBI LLC may have under Texas Property Code §51.006 (''§51~0061 ').”
Mid Pac Portfolio, LLC v. Paula Welch, No. 01-15-00404-CV (Tex. App.—Houston [1st Dist.] Dec. 2, 2015). “3, 9 Tex. Prop. Code § 51.006 (b) ............”
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