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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of statements of ownership and location |
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for manufactured homes to certain lienholders without the consent |
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of the owners of those homes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 1201, Occupations Code, is |
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amended by adding Section 1201.2077 to read as follows: |
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Sec. 1201.2077. ISSUANCE OF STATEMENT OF OWNERSHIP AND |
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LOCATION TO CERTAIN LIENHOLDERS WITHOUT OWNER'S CONSENT. (a) This |
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section applies only to a manufactured home: |
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(1) that is eligible for conversion from personal |
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property to real property under this subchapter; |
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(2) that, together with the real property to which the |
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home is attached, was intended to secure a first lien mortgage loan |
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that has gone into default and is now subject to foreclosure; and |
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(3) for which the person who made the first lien |
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mortgage loan and the borrower-owner, at the time of the making of |
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the mortgage loan, executed documents that evidenced their mutual |
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intent for the owner-borrower to have converted the home to real |
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property and granted a first lien on that real property, including |
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the manufactured home, to secure that mortgage loan. |
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(b) A holder or servicer of a mortgage loan that seeks to |
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foreclose a first lien on a manufactured home described by |
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Subsection (a) that now seeks to foreclose such a lien may apply |
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without the consent of the borrower-owner for the issuance of a new |
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statement of ownership and location that reflects an intent to |
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convert the home from personal property to real property. An |
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application under this section must include an affidavit from the |
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holder or servicer making the application that: |
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(1) contains the election described by Section |
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1201.2055(a); |
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(2) states that it had been the intent of the |
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owner-borrower to convert the manufactured home to real property |
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and grant the maker of the mortgage loan a first lien on the |
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manufactured home, together with the real property to which it is |
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attached; |
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(3) states that the borrower-owner failed to convert |
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the manufactured home to real property; |
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(4) states that the holder of the mortgage loan |
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advanced loan proceeds to or for the benefit of the owner of the |
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manufactured home in reliance on the owner's carrying out the |
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conversion of the manufactured home to real property and granting |
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the holder a first lien on that manufactured home together with the |
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owner's interest in the real property on which it is located; and |
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(5) states that the holder or servicer of the mortgage |
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loan giving the required affidavit has, despite reasonable efforts, |
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been unsuccessful in contacting the owner of the manufactured home |
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to have them re-execute and deliver the required documents to |
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convert the manufactured home to real property as originally |
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contemplated. |
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(c) Not later than the 15th working day after the date of |
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receipt of the completed application and subject to Section |
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1201.2075, the department shall issue a new statement of ownership |
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and location reflecting that the manufactured home has been elected |
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as real property and the mortgage loan holder or servicer who |
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applied for this statement of ownership and location may make the |
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necessary filings and give the necessary notices to complete the |
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process of converting the manufactured home to real property as |
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provided in Section 1201.2055. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |