Part of a series of classroom aids designed for real estate instructors, this instructional packet was developed to help real estate students understand the rules, regulations, and laws governing home foreclosures under deeds of trust in Texas. Information on home foreclosures is presented, covering: (1) the three elements of a proper foreclosure; (2) reasons lenders foreclose; (2) the steps taken by the lender and the trustee before the foreclosure sale; (3) regulations governing foreclosure sales; (4) terms of the sale; (5) deficiency judgements in the event that the foreclosure sale does not generate sufficient revenue to cover the expenses of the sale and the full amount of unpaid principal, interest, attorney's fees, and other charges; (6) invalid sales; (7) recovering damages from a wrongful foreclosure; and (8) procedural points the homeowner should consider in evaluating the foreclosure. The packet also includes a series of 15 overhead transparency masters keyed to the text. (EJV)