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79R9690 T

By:  Hartnett                                                     H.B. No. 2535



A BILL TO BE ENTITLED

AN ACT

relating to the right of redemption after foreclosure.                        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Amend Section 209.011 (d and e) , Property Code, 
as follows:     
	Section 209.011.  RIGHT OF REDEMPTION AFTER FORECLOSURE.  
(d)  To redeem property purchased by the property owners' 
association at the foreclosure sale, the lot owner must pay to the 
association or third party who purchased the property at the 
foreclosure sale:
		(1)  all amounts due the association or a third party 
who purchased the property at the foreclosure sale at the time of 
the foreclosure sale;
		(2)  interest from the date of the foreclosure sale to 
the date of redemption on all amounts owed the association or a 
third party who purchased the property at the foreclosure sale at 
the rate stated in the dedicatory instruments for delinquent 
assessments or, if no rate is stated, at an annual interest rate of 
10 percent;
		(3)  costs incurred by the association or third party 
who purchased the property at the foreclosure sale in foreclosing 
the lien and conveying the property to the redeeming lot owner, 
including reasonable attorney's fees;
		(4)  any assessment levied against the property by the 
association after the date of the foreclosure sale;
		(5)  any reasonable cost incurred by the association or 
a third party who purchased the property at the foreclosure sale, 
including mortgage payments, repayment of delinquent or in default 
liens on the property and costs of repair, maintenance, and leasing 
of the property; and
		(6)  the purchase price paid by the association or a 
third party who purchased the property at the foreclosure sale at 
the foreclosure sale less any amounts due the association or a third 
party who purchased the property at the foreclosure sale under 
Subdivision (1) that were satisfied out of the foreclosure sale 
proceeds.
	[(e)  To redeem property purchased at the foreclosure sale by 
a person other than the property owners' association, the lot 
owner:
		[(1)  must pay to the association:                           
			[(A)  all amounts due the association at the time 
of the foreclosure sale less the foreclosure sales price received 
by the association from the purchaser;
			[(B)  interest from the date of the foreclosure 
sale through the date of redemption on all amounts owed the 
association at the rate stated in the dedicatory instruments for 
delinquent assessments or, in no rate is stated, at an annual 
interest rate of 10 percent;
			[(C)  costs incurred by the association in 
foreclosing the lien and conveying the property to the redeeming 
lot owner, including reasonable attorney's fees;
			[(D)  any unpaid assessments levied against the 
property by the association after the date of the foreclosure sale;
			[(E)  taxable costs incurred in a proceeding 
brought under Subsection (a); and
		[(2)  must pay to the person who purchased the property 
at the foreclosure sale:
			[(A)  any assessments levied against the property 
y the association after the date of the foreclosure sale and paid by 
the purchaser;
			[(B)  the purchase price paid by the purchaser at 
the foreclosure sale;
			[(C)  the amount of the deed recording fee;                 
			[(D)  the amount paid by the purchaser as ad 
valorem taxes, penalties, and interest on the property after the 
date of the foreclosure sale; and
			[(E)  taxable costs incurred in a proceeding 
brought under Subsection (a).
	SECTION 2.  This Act takes effect September 1, 2005.