The Signal in the Filing Data
Source: Texas Signals — aggregate county data.
A Lis Pendens ("suit pending") is a public notice filed with the county clerk offices across Texas when a lender initiates foreclosure proceedings. It precedes the foreclosure by 60–180 days on average — a window where the homeowner still has options, and where sophisticated buyers can make direct, off-market contact.
Through March 2026, Texas counties recorded 1,847 Lis Pendens filings — compared to 1,379 in the same period last year. That's a 34% year-over-year increase, concentrated in three segments.
The Three Seller Profiles Driving the Spike
1. The ARM Recast
Between 2021 and 2022, a significant portion of Texas buyers — particularly investors acquiring multiple properties — opted for 5/1 and 7/1 adjustable-rate mortgages. Those loans are now recasting. A borrower who locked in at 2.875% in 2022 is looking at resets into the 6.5–7.2% range, adding $800–$1,400/month to their payment on a typical Texas investment property.
2. The Short-Term Rental Squeeze
Texas's STR market peaked in 2022. By Q1 2026, average occupancy rates for non-hotel short-term rentals in Texas metro areas have fallen to 58%, down from 74% in 2022. Owners who modeled their mortgage payments against 70%+ occupancy are now running negative.
3. HELOC Resets
During the 2020–2022 appreciation surge, Texas homeowners pulled out an estimated $4.2 billion in HELOC draws against rising equity values. Those lines — many originated at 2–3% draw rates — have repriced with the Fed's rate cycle. A homeowner with a $150,000 HELOC balance saw their monthly interest-only payment jump from $250 to $900+.
Top Zip Codes by Q1 2026 Filings
Source: Texas Signals — aggregate county data.
•Houston (77033) — 198 filings (Southeast Houston, highest volume)
•Dallas (75227) — 172 filings (East Dallas corridor)
•San Antonio (78220) — 154 filings (East Side, near airport)
•Fort Worth (76119) — 141 filings (East Fort Worth corridor)
•Texas (78702) — 118 filings (East Texas (Texas, TX) gentrification zone)
•Houston (77084) — 97 filings (West Houston suburban)
Property Type Breakdown
62% of filings are single-family homes. 18% are condos and townhomes. 12% are small multifamily (2–4 units). 8% are investor/LLC-owned properties — a category that punches above its weight in motivated-seller conversations.
What Smart Investors Do With This Data
Pre-foreclosure data is actionable before the property ever reaches public auction or hits the MLS. The typical timeline from Lis Pendens filing to courthouse steps is 90–180 days in Texas. That window gives investors time to make direct contact, negotiate a short sale, or position for a deed-in-lieu transaction — often at 10–20% below market value.
The most important filter isn't the type of distress — it's the equity position. A homeowner who bought in 2019 at $280,000 and is facing foreclosure on a property now worth $520,000 has enormous incentive to work with a buyer before the bank takes the property.
The Bottom Line
A 34% year-over-year increase in pre-foreclosure filings is not a harbinger of collapse. Texas's fundamentals — strong job market, continued net in-migration, constrained infill supply — remain intact. What it represents is a recalibration: the unwinding of overleveraged positions taken at peak valuations in a low-rate environment that no longer exists.
For disciplined buyers and investors, this recalibration is not a threat. It's inventory.
Texas Signals tracks every Lis Pendens filing across Texas counties in real time, with owner contact information, equity estimates, and property details. Subscribe to access the full database — updated daily.
Source: Texas Signals — aggregate county data.
Source: Texas Signals — aggregate county data.