Bill Text: TX SB283 | 2015-2016 | 84th Legislature | Engrossed
Bill Title: Relating to requirements for the nonjudicial foreclosure of certain residential mortgage liens.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2015-01-28 - Referred to Business & Commerce [SB283 Detail]
Download: Texas-2015-SB283-Engrossed.html
| By: West | S.B. No. 283 | |
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| relating to requirements for the nonjudicial foreclosure of certain | ||
| residential mortgage liens. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 51, Property Code, is amended by adding | ||
| Section 51.0012 to read as follows: | ||
| Sec. 51.0012. EXPEDITED ORDER ALLOWING NONJUDICIAL | ||
| FORECLOSURE OF CERTAIN LIENS REQUIRED. (a) In this section: | ||
| (1) "Loss mitigation application" means an oral or | ||
| written request for a loss mitigation option that is accompanied by | ||
| any information required by a mortgage servicer for evaluation for | ||
| a loss mitigation option. | ||
| (2) "Loss mitigation option" means an alternative to | ||
| foreclosure offered by the mortgagee that is made available through | ||
| the mortgage servicer to the debtor. | ||
| (3) "Mortgage loan" includes a purchase money mortgage | ||
| loan, a home equity loan, and a refinanced mortgage loan. The term | ||
| does not include a home equity line of credit or a reverse mortgage. | ||
| (b) Notwithstanding any agreement to the contrary, a | ||
| mortgagee or mortgage servicer of a mortgage loan secured by a deed | ||
| of trust or other contract lien on real property used as a debtor's | ||
| residence may not foreclose the lien under Section 51.002 unless | ||
| the mortgagee or mortgage servicer obtains an expedited order under | ||
| Rule 736, Texas Rules of Civil Procedure, before proceeding with | ||
| the foreclosure. | ||
| (c) In the application for the expedited order to allow the | ||
| foreclosure of the lien, the mortgagee or mortgage servicer must | ||
| state that: | ||
| (1) a payment for the mortgage loan is at least 120 | ||
| days delinquent; and | ||
| (2) no loss mitigation application submitted to the | ||
| mortgage servicer by any person who is obligated to pay the mortgage | ||
| loan is pending with the mortgage servicer. | ||
| SECTION 2. Section 51.0012, Property Code, as added by this | ||
| Act, applies only to a mortgage loan agreement entered into on or | ||
| after the effective date of this Act. A mortgage loan agreement | ||
| entered into before the effective date of this Act is governed by | ||
| the law applicable to the agreement immediately before that date, | ||
| and that law is continued in effect for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2015. | ||
