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.