🏠 Fair Market Value vs. Foreclosure Price: What Most Texans Don’t Know About Deficiency Judgments

Jonah Wilson
Apr 30
2 min read

By Jonah Wilson | Foreclosure Consultant | Overages.US

Let’s break down a powerful legal weapon most Texans don’t even realize they have—Section 51.003 of the Texas Property Code.

If your home has already been foreclosed and the lender is still chasing you for more money, you have rights—and they start with “fair market value.”

📍Real Case Example: Moore v. LPP Mortgage, Ltd. (2010)

Here’s what happened:

Moore took out a $400,000 loan, backed by a piece of commercial property.
After foreclosure, the lender sold the property for only $250,000.
Then, the lender sued Moore for the $150,000 difference (called a deficiency judgment).

But Moore didn’t back down.

Instead, he used Section 51.003 to say:

“That property was worth way more than $250,000 when you sold it.”

And the court agreed. They said:

If a lender sells it too low, the borrower shouldn’t be stuck paying the difference.

💡 So What Does This Mean For You?

If your home is foreclosed and sold for less than it’s worth, the lender can’t just come after you for the full loan balance.You can ask the court to find out what your home was really worth—and if that number is higher than the sale price, you might not owe a dime.

🧾 What You Need to File a Fair Market Value Claim:

A real estate agent’s price opinion
Recent comparable sales in your area
An appraisal within 6–12 months of the foreclosure
Expert witness testimony (in some cases)

⚠️ WARNING:

If you do nothing, you might lose your chance to claim fair market value. This defense must be raised in court during the deficiency lawsuit.

✅ Bottom Line

Texas law lets you fight back if a foreclosed property is sold too cheap.But you’ve got to know your rights and act fast.

If you're facing a foreclosure—or being sued after one—don’t just accept the number the bank gives you.Let us show you how to use the law to protect your family’s equity.

📞 Reach out at Overages.us or call our office to schedule a consultation.

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