Texas appeals court won’t restore home lost in Guild Mortgage foreclosure

The court did not resolve any of that, and it did not have to. It pointed to the association’s threshold defense that the homeowner had sued the wrong party. In court papers, the association said it filed “an Application for Expedited Foreclosure Pursuant to Rule 736 due to the Plaintiff’s failure to pay [his] assessments,” but “did not foreclose on the Plaintiff’s property.” The entity that did, it said, was “the Plaintiff’s lender, Guild Mortgage Company.” 

The mortgage paperwork tracked that account. The borrower financed the home through Guild Mortgage in 2018 under a deed of trust. After he defaulted, the lender pursued a non-judicial foreclosure – a sale run under the deed of trust’s power of sale, with no court judgment behind it. A substitute trustee sold the property to the highest bidder on December 6, 2022, and a Substitute Trustee’s Deed passed it to Guild Mortgage Company, LLC. The homeowner alleged the home later changed hands for about $300,000 and now sits in an LLC’s name. Guild Mortgage was not a party to the appeal. 

The court found no abuse of discretion. It noted the homeowner had conceded in his own filings that the association no longer held or controlled the house, so it could not be ordered to return what it did not have. Even assuming his other allegations were true, the court said, he had not shown a probable right to the relief he sought. 

The panel disposed of the rest briefly. The rule the homeowner cited to demand a hearing applies only when a court grants a restraining order, not when it denies one, and the Sunday signature did not void the 2022 order. 

The ruling is narrow. The court reviewed only the injunction denial, not whether the foreclosure was proper. The homeowner’s quiet-title and wrongful-foreclosure claims remain pending in the trial court.