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By:  Carona                                                       S.B. No. 1631

Substitute the following for S.B. No. 1631:                                   

By:  Zedler                                                   C.S.S.B. No. 1631



A BILL TO BE ENTITLED

AN ACT

relating to certain lot owners' right to redemption following 
certain foreclosure sales.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 209.011(e), Property Code, is amended to 
read as follows:
	(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, if 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; 
and
			(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 
by 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); and
			(F)  if the lot is wholly or partly located in a 
county with a population of less than 3.4 million, any mortgage 
payments made by the purchaser.
	SECTION 2.  Section 209.011(e), Property Code, as amended by 
this Act, applies only to a foreclosure that occurs on or after the 
effective date of this Act.  A foreclosure that occurs before the 
effective date of this Act is governed by the law in effect 
immediately before the effective date of this Act, and the former 
law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.