Dallas, TX (Court of Appeals) — In a stark reminder of the rigid enforcement surrounding Texas homeowners association (HOA) laws, an appellate court has overturned a lower court's ruling, stripping a North Texas couple of their home after they missed a statutory redemption deadline by just a single day following an HOA foreclosure sale.

The case, decided on August 7, 2026, by the Fifth District Court of Appeals in Dallas, centers on Collin County homeowners Jack Van Chapman and Jacquelynn Jonetta Lyles Chapman. The couple lost their home to foreclosure after falling behind on their HOA assessments. At the subsequent auction, the investment firm Legacy Brokerage, Inc. purchased the property for $4,715.

The 180-Day Clock and the Disputed $199,000 Bill

Under Chapter 209 of the Texas Property Code, homeowners whose properties are foreclosed upon by an HOA maintain a statutory right to redeem their property within 180 days after written notice of the sale is mailed. In this instance, notice was mailed to the Chapmans on September 21, 2023, establishing a redemption deadline of March 19, 2024.

On February 20, 2024, the Chapmans formally requested the exact payout figure required to regain title to their home. Legacy Brokerage responded on March 6, 2024, issuing a redemption bill totaling $199,610.46. The firm stated that this total included the original auction price, deed recording fees, and payments made toward the property's existing mortgage to stave off separate foreclosure proceedings.

Contesting the inclusion of the mortgage payoff, the Chapmans waited until March 20, 2024—one day after the 180-day window expired—to send Legacy a check for $4,785 ($4,715 auction price plus $70 in recording fees). They argued that Texas law did not require them to satisfy the purchaser’s payments to other lienholders to redeem the property. Legacy rejected the check, citing that the payment was both untimely and insufficient.

Trial Court Rules for Family. Dallas Appeals Court Take Home Away From Family

The Chapmans subsequently sued Legacy Brokerage in the 429th Judicial District Court of Collin County. The trial judge initially ruled in favor of the couple, declaring that they had effectively redeemed their home and awarding them $7,500 in attorney’s fees.

However, the Fifth Court of Appeals reversed that decision in a unanimous panel opinion authored by Justice Mike Lee, joined by Justices Miskel and Kennedy.

The appellate court highlighted Texas Property Code § 209.011(m), which provides that if a homeowner requests a redemption figure, the deadline is extended to 10 days after the third-party purchaser provides written notice of the required amount. Because Legacy provided notice on March 6, the 10-day extension period expired well before the original March 19 deadline, leaving the original March 19 date as the final cutoff.

Addressing the Chapmans' submission of payment on March 20, the court emphasized strict adherence to legal timelines:

"Absent statutory language to the contrary, a statutorily imposed time period does not allow for substantial compliance... Missing a filing deadline by one day, or giving nine days' notice instead of ten, might 'substantially comply' with the statute's requirement. However, when it comes to statutorily required time periods, substantial compliance is insufficient."

Because the Chapmans failed to tender payment on or before March 19, the court ruled they forfeited their redemption rights entirely. The appellate court rendered judgment dismissing the Chapmans' claims, cementing Legacy Brokerage’s ownership of the property.

Key Takeaways for Local Property Owners

While this legal battle originated in Collin County, the ruling serves as a crucial lesson for homeowners across North Texas. Under Texas law, HOA assessment liens hold significant legal power, and strict adherence to statutory deadlines—down to the exact calendar date—is required to protect property ownership rights.

For further context on how escalating HOA assessments and legal fees can lead to severe foreclosure risks for Texas homeowners, watch this local news report on Houston Homeowners Facing HOA Foreclosure Concerns.