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A BILL TO BE ENTITLED
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AN ACT
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relating to the foreclosure of a contract lien on certain |
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residential real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 402, Government Code, is |
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amended by adding Section 402.035 to read as follows: |
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Sec. 402.035. RESIDENTIAL PROPERTY FORECLOSURE NOTICE. (a) |
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The attorney general shall adopt a model form for a notice of |
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default required under Section 51.002(d), Property Code. |
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(b) The notice must include: |
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(1) a plain-language definition of the term |
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"foreclosure"; |
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(2) a statement that state law requires that the |
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debtor in default be given at least 45 days to cure the default; |
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(3) a description of the debtor's rights and the |
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options available to the debtor to prevent the foreclosure; |
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(4) a description of and warning against any |
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fraudulent foreclosure rescue activities that may be encountered by |
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the debtor in connection with the foreclosure, including any |
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unconscionable actions or courses of action under Subchapter E, |
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Chapter 17, Business & Commerce Code; and |
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(5) a description of and contact information for |
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resources available to the debtor to assist in preventing the |
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foreclosure or in filing a complaint concerning the foreclosure |
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process, including housing and consumer advocates, the State Bar of |
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Texas, and nonprofit legal assistance programs. |
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(c) The attorney general shall maintain an updated version |
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of the model notice form adopted under this section on the attorney |
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general's Internet website. |
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SECTION 2. Section 51.002(d), Property Code, is amended to |
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read as follows: |
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(d) Notwithstanding any agreement to the contrary, the |
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mortgage servicer of the debt shall serve a debtor in default under |
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a deed of trust or other contract lien on real property used as the |
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debtor's residence with written notice by certified mail. The |
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notice of default required by this subsection must state [stating] |
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that the debtor is in default under the deed of trust or other |
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contract lien and must give [giving] the debtor at least 45 [20] |
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days to cure the default before notice of sale can be given under |
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Subsection (b). The notice of default must include any other |
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information in the model notice form adopted by the attorney |
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general under Section 402.035, Government Code. The entire |
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calendar day on which the notice required by this subsection is |
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given, regardless of the time of day at which the notice is given, |
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is included in computing the 45-day [20-day] notice period required |
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by this subsection, and the entire calendar day on which notice of |
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sale is given under Subsection (b) is excluded in computing the |
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45-day [20-day] notice period. |
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SECTION 3. Chapter 51, Property Code, is amended by adding |
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Sections 51.0022 and 51.010 to read as follows: |
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Sec. 51.0022. CONTACT REQUIREMENT. (a) In addition to |
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giving a notice of default under Section 51.002(d), a mortgage |
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servicer shall make a good faith attempt to contact a debtor in |
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default described by Section 51.002(d) in person or by telephone |
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before notice of sale may be given under Section 51.002(b). |
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(b) The notice of sale of the property filed under Section |
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51.002(b) must include an affidavit by the mortgage servicer that |
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affirms: |
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(1) the mortgage servicer contacted the debtor in |
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person or by telephone to notify the debtor of the default; or |
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(2) the mortgage servicer made a good faith attempt to |
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contact the debtor to notify the debtor of the default and was |
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unsuccessful. |
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Sec. 51.010. HOMEOWNER'S TIME TO VACATE. A person who |
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purchases residential real property at a foreclosure sale under |
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this chapter and gives a notice to vacate under Section 24.005 to a |
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person who owned the property immediately before the foreclosure |
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sale and occupies the property at the time of the foreclosure sale |
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may not require the former owner to vacate the property before the |
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31st day after the date of the foreclosure sale. |
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SECTION 4. (a) Not later than November 1, 2009, the attorney |
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general shall adopt the model notice form under Section 402.035, |
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Government Code, as added by this Act. |
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(b) The changes in law made by this Act to Chapter 51, |
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Property Code, apply only to a sale of residential real property in |
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which notice of default under Section 51.002, Property Code, is |
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provided on or after December 1, 2009. A sale in which notice of |
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default is provided before December 1, 2009, is subject to the law |
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in effect immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2009. |