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.