|
House Bill 3857 |
House Author: Herrero et al. |
|
Effective: 6-19-09 |
Senate Sponsor: Hinojosa |
House Bill 3857 amends the Property Code to authorize a court to temporarily stay a foreclosure proceeding or adjust the obligations of the contract secured by the lien if the action is filed during a servicemember's period of active duty military service or during the nine months after the conclusion of active duty and requires the court to do this on the application by a servicemember whose ability to comply with the obligations is materially affected by the member's service. The bill prohibits a sale, foreclosure, or seizure of property under a mortgage, deed of trust, or other contract lien from being conducted during the servicemember's period of active duty or during the nine months after that service concludes unless the sale, foreclosure, or seizure is conducted under a previous court order, or under an agreement in which the servicemember waives such rights. The bill creates a Class A misdemeanor offense for a person who knowingly makes or causes to be made a sale, foreclosure, or seizure of property during a military servicemember's period of active duty military service or during the nine months after the date on which that service period concludes. The bill entitles a dependent of a military servicemember to these protections if certain conditions are met.
House Bill 3857 authorizes a court issuing a stay or taking any other action regarding the enforcement of an obligation to grant a similar stay or take similar action with respect to any person who is or may be primarily or secondarily subject to the obligation. The bill authorizes the court, if a judgment or decree is vacated or set aside, to also set aside or vacate the judgment or decree with respect to any person who is or may be primarily or secondarily subject to the obligation that is subject to the judgment or decree. The bill does not prevent a waiver of these protections in writing by such a person, whether primarily or secondarily liable on an obligation. The bill provides that if the waiver is executed by an individual who after the execution of the waiver enters active duty military service, or by a dependent of an individual who after the execution of the waiver enters active duty military service, the waiver is not valid after the beginning of the period of the active duty military service, unless the waiver was executed by the individual or dependent during the applicable period described by the federal Servicemembers Civil Relief Act.
House Bill 3857 applies its provisions only to an obligation that is secured by a mortgage, deed of trust, or other contract lien on real property or personal property that is a dwelling owned by a military servicemember that originates before the date on which the servicemember's active duty military service commences and for which the servicemember is still obligated.