By Uher H.B. No. 333 74R512 PAM-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to authorizing a deed-of-trust foreclosure after accepting 1-3 a deed in lieu of foreclosure. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 51, Property Code, is amended by adding 1-6 Section 51.006 to read as follows: 1-7 Sec. 51.006. DEED-OF-TRUST FORECLOSURE AFTER DEED IN LIEU OF 1-8 FORECLOSURE. (a) This section applies to a holder of a debt under 1-9 a deed of trust who accepts from the debtor a deed conveying real 1-10 property subject to the deed of trust in satisfaction of the debt. 1-11 (b) The holder of a debt may void a deed conveying real 1-12 property in satisfaction of the debt before the fourth anniversary 1-13 of the date the deed is executed and foreclose under the original 1-14 deed of trust if: 1-15 (1) the debtor fails to disclose to the holder of the 1-16 debt a lien or other encumbrance on the property before executing 1-17 the deed conveying the property to the holder of the debt in 1-18 satisfaction of the debt; and 1-19 (2) the holder of the debt has no knowledge of the 1-20 undisclosed lien or encumbrance on the property. 1-21 (c) The remedy provided by this section is the debt holder's 1-22 only remedy for the debtor's failure to disclose a lien or other 1-23 encumbrance on the property before executing a deed conveying the 1-24 property in satisfaction of the debt. 2-1 SECTION 2. This Act applies only to a holder of a debt who 2-2 accepts a deed conveying property in satisfaction of a debt on or 2-3 after the effective date of this Act. 2-4 SECTION 3. The importance of this legislation and the 2-5 crowded condition of the calendars in both houses create an 2-6 emergency and an imperative public necessity that the 2-7 constitutional rule requiring bills to be read on three several 2-8 days in each house be suspended, and this rule is hereby suspended.