What do deficiency statutes allow a creditor to do in Texas?

Deficiency statutes in Texas allow a creditor to seek a personal balance from the debtor if the foreclosure sale of the property does not cover the outstanding debt. This means that if a property is sold at a foreclosure auction for an amount less than what is owed on the mortgage, the creditor has the right to pursue the borrower for the remaining balance. This recovery can occur through various methods, such as garnishing wages or seizing assets, thereby enabling creditors to mitigate their losses from the foreclosure.

The other options don't represent the primary function of deficiency statutes. Adjusting mortgage interest rates or changing loan terms post-foreclosure pertains to the lender's management of the loan rather than what deficiency statutes govern. Similarly, foreclosing without prior notice contradicts due process rights in Texas, as creditors must follow specific legal procedures before initiating foreclosure.