H.B. No. 2066

	AN ACT
	relating to the rescission of nonjudicial foreclosure sales.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 51, Property Code, is amended by adding
	Section 51.016 to read as follows:
	Sec. 51.016.  RESCISSION OF NONJUDICIAL FORECLOSURE SALES.
	(a) This section applies only to a nonjudicial foreclosure sale of
	residential real property conducted under Section 51.002. In this
	subsection, "residential real property" means:
	(1)  a single family home, duplex, triplex, or
	quadraplex; or
	(2)  a unit in a multiunit residential structure in
	which title to an individual unit is transferred to the owner of the
	unit under a condominium or cooperative system.
	(b)  Not later than the 15th calendar day after the date of a
	foreclosure sale, a mortgagee, trustee, or substitute trustee may
	rescind the sale under this section if:
	(1)  the statutory requirements for the sale were not
	satisfied;
	(2)  the default leading to the sale was cured before
	the sale;
	(3)  a receivership or dependent probate
	administration involving the property was pending at the time of
	sale;
	(4)  a condition specified in the conditions of sale
	prescribed by the trustee or substitute trustee before the sale and
	made available in writing to prospective bidders at the sale was not
	met;
	(5)  the mortgagee or mortgage servicer and the debtor
	agreed before the sale to cancel the sale based on an enforceable
	written agreement by the debtor to cure the default; or
	(6)  at the time of the sale, a court-ordered or
	automatic stay of the sale imposed in a bankruptcy case filed by a
	person with an interest in the property was in effect.
	(c)  On or before the 15th calendar day after the date of the
	sale, the party rescinding the sale shall:
	(1)  serve a written notice of rescission that
	describes the reason for the rescission and includes recording
	information for any affected trustee's or substitute trustee's deed
	that was recorded on:
	(A)  the purchaser, if the mortgagee is not the
	purchaser; and
	(B)  each debtor who, according to the records of
	the mortgage servicer of the debt, is obligated to pay the debt; and
	(2)  file each notice for recording in the real
	property records of the county in which all or a part of the
	property is located.
	(d)  A notice required by Subsection (c) must be served by
	certified mail.  Service of the notice is complete when the notice
	is deposited in the United States mail, postage prepaid and
	addressed to the purchaser or debtor, as applicable, at the
	purchaser's or debtor's last known address, as applicable.  The
	affidavit of a person knowledgeable of the facts to the effect that
	service was completed is prima facie evidence of service.
	(e)  Not later than the fifth calendar day after the date a
	foreclosure sale is rescinded under this section, the mortgagee
	shall return to the purchaser by certified mail, electronic or wire
	transfer, or courier service with delivery tracking the amount of
	the bid paid by the purchaser for the property at the sale.  The
	debtor shall return to the trustee the amount of any excess proceeds
	received by the debtor from the sale. The return of the bid amount
	is considered made on the date:
	(1)  the bid amount is deposited postage prepaid in the
	United States mail or with the courier service addressed to the
	purchaser at the purchaser's last known address; or
	(2)  the electronic or wire transfer is ordered.
	(f)  The rescinding mortgagee, trustee, or substitute
	trustee shall cause to be filed for recording in the real property
	records of the county where the notice required under Subsection
	(c) was recorded an affidavit stating the date the bid amount was
	returned together with the certified mail, electronic or wire
	transfer, or courier service delivery tracking information.
	(g)  An affidavit executed and filed in accordance with
	Subsection (f) is prima facie evidence of the return of the bid
	amount and of the authority of the maker of the affidavit. A bona
	fide purchaser, lender, or other person acquiring an interest in
	the property or an insurer of title is entitled to rely conclusively
	on the record of the filed affidavit and notice, and any subsequent
	purchaser in good faith and for value is entitled to bona fide
	purchaser protection.
	(h)  The rescission of a foreclosure sale under this section
	restores the mortgagee and the debtor to their respective title,
	rights, and obligations under any instrument relating to the
	foreclosed property that existed immediately prior to the sale.
	(i)  A rescission of a foreclosure sale under this section is
	void as to a creditor or to a subsequent purchaser for a valuable
	consideration without notice unless notice of the rescission has
	been acknowledged, sworn to, or proved and filed for recording as
	required by law. A rescission of a foreclosure sale under this
	section evidenced by an unrecorded instrument is binding on a party
	to the instrument, on the party's heirs, and on a subsequent
	purchaser who does not pay a valuable consideration or who has
	notice of the instrument.
	(j)  No action challenging the effectiveness of a rescission
	under this section may be commenced unless the action is filed on or
	before the 30th calendar day after the date the notices of
	rescission required by Subsection (c) are filed for recording. A
	lis pendens notice based on the rescission not recorded within that
	period has no effect. This subsection does not affect the
	limitations period for an action claiming damages resulting from
	the rescission.
	(k)  If the foreclosure sale is rescinded under this section
	for a reason listed in Subsection (b), other than a stay described
	by Subsection (b)(6), the court in a civil action filed by the
	purchaser challenging the effectiveness of the rescission or
	claiming damages resulting from the rescission may only award as
	damages to the purchaser the amount of the bid paid for the property
	by the purchaser at the sale that has not been refunded to the
	purchaser, plus interest on that amount at the rate of 10 percent
	per year.  Notwithstanding any other law, the court may not order
	specific performance of the sale as a remedy for the purchaser.
	Interest awarded under this subsection ceases to accrue on the
	fourth day after the date the mortgagee deposits the amount of the
	damages awarded in the United States mail or with a courier for
	delivery to the purchaser.
	(l)  If a foreclosure sale is rescinded under this section
	for a reason provided by Subsection (b)(6), the court in a civil
	action filed by the purchaser challenging the effectiveness of the
	rescission or claiming damages resulting from the rescission may
	only award as damages to the purchaser the amount of the bid paid
	for the property by the purchaser at the sale that has not been
	refunded to the purchaser.
	(m)  Nothing in this section prohibits the rescission of a
	sale by agreement of the affected parties on other terms or a suit
	to rescind a sale not rescinded under this section.
	SECTION 2.  The changes in law made by this Act apply only to
	a foreclosure sale that occurs on or after the effective date of
	this Act. A foreclosure sale that occurred before the effective
	date of this Act is governed by the law applicable to the
	foreclosure sale immediately before the effective date of this Act,
	and that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2066 was passed by the House on April
	22, 2015, by the following vote:  Yeas 142, Nays 0, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 2066 on May 23, 2015, by the following vote:  Yeas 130, Nays 0,
	2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2066 was passed by the Senate, with
	amendments, on May 22, 2015, by the following vote:  Yeas 31, Nays
	0.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor