The Door to Foreclosure Remains Open: The Appropriate Interplay Between Receivership and a Lender’s Right to Nonjudicial Trustee Sales in Texas

In this time of economic hardship, and with the commercial real estate sector under extraordinary stress, lenders, borrowers and their respective lawyers need to be fully aware of the proper interplay between receivership and foreclosure under Texas law.

Such consideration is especially important so that financial institutions and their legal advisors know their options and encourage courts to appropriately defer to the legitimate rights of creditors under Texas law and as established by the Texas Supreme Court in the First Southern case over three decades ago.