By: Hilderbran H.B. No. 3842
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of statements of ownership and location
  for manufactured homes to certain lienholders without the consent
  of the owners of those homes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter E, Chapter 1201, Occupations Code, is
  amended by adding Section 1201.2077 to read as follows:
         Sec. 1201.2077.  ISSUANCE OF STATEMENT OF OWNERSHIP AND
  LOCATION TO CERTAIN LIENHOLDERS WITHOUT OWNER'S CONSENT.  (a)  This
  section applies only to a manufactured home:
               (1)  that is eligible for conversion from personal
  property to real property under this subchapter;
               (2)  that, together with the real property to which the
  home is attached, was intended to secure a first lien mortgage loan
  that has gone into default and is now subject to foreclosure; and
               (3)  for which the person who made the first lien
  mortgage loan and the borrower-owner, at the time of the making of
  the mortgage loan, executed documents that evidenced their mutual
  intent for the owner-borrower to have converted the home to real
  property and granted a first lien on that real property, including
  the manufactured home, to secure that mortgage loan.
         (b)  A holder or servicer of a mortgage loan that seeks to
  foreclose a first lien on a manufactured home described by
  Subsection (a) that now seeks to foreclose such a lien may apply
  without the consent of the borrower-owner for the issuance of a new
  statement of ownership and location that reflects an intent to
  convert the home from personal property to real property. An
  application under this section must include an affidavit from the
  holder or servicer making the application that:
               (1)  contains the election described by Section
  1201.2055(a);
               (2)  states that it had been the intent of the
  owner-borrower to convert the manufactured home to real property
  and grant the maker of the mortgage loan a first lien on the
  manufactured home, together with the real property to which it is
  attached;
               (3)  states that the borrower-owner failed to convert
  the manufactured home to real property;
               (4)  states that the holder of the mortgage loan
  advanced loan proceeds to or for the benefit of the owner of the
  manufactured home in reliance on the owner's carrying out the
  conversion of the manufactured home to real property and granting
  the holder a first lien on that manufactured home together with the
  owner's interest in the real property on which it is located; and
               (5)  states that the holder or servicer of the mortgage
  loan giving the required affidavit has, despite reasonable efforts,
  been unsuccessful in contacting the owner of the manufactured home
  to have them re-execute and deliver the required documents to
  convert the manufactured home to real property as originally
  contemplated.
         (c)  Not later than the 15th working day after the date of
  receipt of the completed application and subject to Section
  1201.2075, the department shall issue a new statement of ownership
  and location reflecting that the manufactured home has been elected
  as real property and the mortgage loan holder or servicer who
  applied for this statement of ownership and location may make the
  necessary filings and give the necessary notices to complete the
  process of converting the manufactured home to real property as
  provided in Section 1201.2055.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.