| TO: | Honorable Troy Fraser, Chair, Senate Committee on Business & Commerce |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB472 by Estes (Relating to notice required before and period to vacate after foreclosure sale of real property. ), Committee Report 1st House, Substituted |
The bill would amend the Property Code so that the purchaser of foreclosed property would need to deliver a notice to vacate to the tenant of the property no later than 24 hours after the sale. The contents of the notice would be prescribed by the Office of Attorney General (OAG).
The bill would also amend the 20-day period a debtor has to cure a default on a mortgage to 45-days with additional general requirements for the right to cure before a notice of sale is given. The notice of sale would be prescribed by the OAG. The mortgage servicer would need to make a reasonable effort in contacting the debtor after the notice of sale. The bill would establish the time under which a debtor or tenant of a debtor has to vacate a sold foreclosed property.
Based on the analysis of the OAG, the Department of Savings and Mortgage Lending, the Office of Consumer Credit, and the Department of Banking, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
| Source Agencies: | 302 Office of the Attorney General, 450 Department of Savings and Mortgage Lending, 451 Department of Banking, 466 Office of Consumer Credit Commissioner
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| LBB Staff: | JOB, JRO, MW, ACa
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